EXHIBIT 11
HOMESTAKE MINING COMPANY AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In thousands, except per share amounts)
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1998 1997 1996
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BASIC:
Earnings:
Net income (loss) $ (218,325) $ (230,606) $ 45,765
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Net income (loss) applicable to basic earnings
per share calculation $ (218,325) $ (230,606) $ 45,765
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Weighted average number of shares outstanding 213,354 210,537 210,027
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Net income (loss) per share - basic $ (1.02) $ (1.10) $ 0.22
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DILUTED:
Earnings:
Net income (loss) $ (218,325) $ (230,606) $ 45,765
Add:
Interest relating to 5.5% convertible
subordinated notes, net of tax 8,250 6,517 6,517
Amortization of issuance costs relating to 5.5%
convertible subordinated notes, net of tax 561 443 443
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Net income (loss) applicable to diluted
earnings per share calculation $ (209,514) $ (223,646) $ 52,725
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Weighted average number of shares outstanding:
Common shares 213,354 210,537 210,027
Additional average shares outstanding assuming:
Conversion of 5.5% convertible subordinated notes 6,505 6,505 6,505
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219,859 217,042 216,532
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Net income (loss) per share - diluted (a) $ (0.95) $ (1.03) $ 0.24
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<FN>
(a) This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although it is contrary to paragraph 13 of SFAS 128 because it
produced an anti-dilutive result.
</FN>