EXHIBIT 11 HOMESTAKE MINING COMPANY AND SUBSIDIARIES Computation of Earnings Per Share (unaudited) (In thousands, except per share amounts) Three Months Ended March 31, BASIC 1999 1998 --------------- --------------- Earnings: Net income (loss) applicable to basic earnings per share calculation $ 2,198 $ (6,586) =============== =============== Weighted average number of shares outstanding 239,179 210,659 =============== =============== Net income (loss) per share - basic $ 0.01 $ (0.03) =============== =============== DILUTED Earnings: Net income (loss) $ 2,198 $ (6,586) Add: Interest relating to 5.5% convertible subordinated notes, net of tax 2,062 1,630 Amortization of issuance costs relating to 5.5% convertible subordinated notes, net of tax 140 111 --------------- --------------- Net income (loss) applicable to diluted earnings per share calculation $ 4,400 $ (4,845) =============== =============== Weighted average number of shares outstanding: Common shares 239,179 210,659 Additional average shares outstanding assuming: Conversion of 5.5% convertible subordinated notes 6,505 6,505 --------------- --------------- 245,684 217,164 =============== =============== Net income (loss) per share - diluted (a) $ 0.02 $ (0.03) =============== =============== <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 produces an anti-dilutive result. Diluted net income (loss) per share computed in accordance with SFAS 128 was the same as basic earnings per share. </FN>