EXHIBIT 11
HOMESTAKE MINING COMPANY AND SUBSIDIARIES
Computation of Earnings Per Share (unaudited)
(In thousands, except per share amounts)
Three Months Ended September 30, Nine Months Ended September 30,
BASIC 1999 1998 1999 1998
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Earnings:
Net income (loss) applicable to basic earnings
per share calculation $ 1,747 $ (182,833) $ 914 $ (233,584)
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Weighted average number of shares outstanding 260,232 229,231 259,838 229,015
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Net income (loss) per share - basic $ 0.01 $ (0.80) $ 0.00 $ (1.02)
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DILUTED
Earnings:
Net income (loss) $ 1,747 $ (182,833) $ 914 $ (233,584)
Add: Interest relating to 5.5% convertible
subordinated notes, net of tax 1,978 1,629 6,020 4,888
Amortization of issuance costs relating
to 5.5% convertible subordinated notes,
net of tax 138 110 413 331
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Net income (loss) applicable to diluted earnings
per share calculation $ 3,863 $ (181,094) $ 7,347 $ (228,365)
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Weighted average number of shares outstanding:
Common shares 260,232 229,231 259,838 229,015
Additional average shares outstanding assuming:
Conversion of 5.5% convertible subordinated notes 6,356 6,505 6,452 6,505
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266,588 235,736 266,290 235,520
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Net income (loss) per share - diluted (a) $ 0.01 $ (0.77) $ 0.03 $ (0.97)
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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 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>