SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the year ended December 31, 1995
HOMESTAKE MINING COMPANY
SAVINGS PLAN
(Full title of Plan)
HOMESTAKE MINING COMPANY
(Issuer of Securities Held Pursuant to the Plan)
650 California Street
San Francisco, California 94108
(Address of principal executive offices)
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Trustees (or other persons who administer the Plan) have duly caused this annual
report to be signed by the undersigned thereunto duly authorized.
HOMESTAKE MINING COMPANY
SAVINGS PLAN
By /s/ T.H. Wong
----------------------------
T.H. Wong
Assistant Treasurer and
Assistant Secretary
June 26, 1996
<PAGE>
Item 1. Financial Statements and Exhibits
a. Financial Statements for the years ended December 31, 1995
and 1994 and Supplemental Schedules as of and for the year
ended December 31, 1995 and Independent Auditors' Report.
b. Exhibit No. 23
Independent Auditors' Consent
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
-------
FINANCIAL STATEMENTS
for the years ended December 31, 1995 and 1994
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
-------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
<S> <C>
Financial Statements:
Report of Independent Accountants 2
Statements of Net Assets Available for Benefits
as of December 31, 1995 and 1994 3
Statement of Changes in Net Assets Available for
Benefits for the Year Ended December 31, 1995 4
Notes to Financial Statements 5-16
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment
Purposes as of December 31, 1995 17
Item 27d - Schedule of Reportable Transactions
for the Year Ended December 31, 1995 18
</TABLE>
1
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
The Savings Plan Committee
Homestake Mining Company
San Francisco, California
We have audited the accompanying statements of net assets available for benefits
of the Homestake Mining Company Savings Plan (the Plan) as of December 31, 1995
and 1994, and the related statement of changes in net assets available for
benefits for the year ended December 31, 1995. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform an audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by Plan
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1995 and 1994, and the changes in net assets available for benefits
for the year ended December 31, 1995, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes as of December 31, 1995 and of reportable transactions
for the year then ended are presented for the purpose of additional analysis and
are not a required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/ Coopers & Lybrand L.L.P.
- ----------------------------
San Francisco, California
June 20, 1996
2
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1995 and 1994
(in thousands)
<TABLE>
<CAPTION>
ASSETS 1995 1994
------- --------
<S> <C> <C>
Cash and cash equivalents: $ 607 $ 518
------- -------
Investments:
Wells Fargo Asset Allocation Fund 9,761 7,107
Wells Fargo S&P 500 Stock Fund - 4,169
Wells Fargo Lifepath Funds 5,046 4,215
Neuberger & Berman Guardian Trust Fund 1,416 -
Templeton Foreign Fund 400 -
Wells Fargo Stagecoach S&P 500 Stock Fund 5,941 -
Homestake Mining Company Stock Fund 10,029 10,165
Participant loans receivable 2,222 2,051
Fixed Income Fund 19,915 21,236
Frozen Confederation Life
Guaranteed Investment Contracts (See Note 12) 3,091 3,091
------ ------
57,821 52,034
Receivables & Other Assets: - 3
------ ------
Total assets 58,428 52,555
LIABILITIES
Amounts due to brokers for securities purchased 327 144
------- -------
Net assets available for benefits $58,101 $52,411
======= =======
</TABLE>
The accompanying notes are an integral part of these
financial statements.
3
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
for the year ended December 31, 1995
(in thousands)
<TABLE>
<CAPTION>
<S> <C>
Additions to net assets attributed to:
Interest and dividends $ 1,383
Interest on participants' loans 186
Mutual fund income 235
Net appreciation in the fair value of investments 4,392
-------
6,196
-------
Contributions:
Company, in cash 1,826
Participants, in cash 2,679
Transfers in from other plans 129
-------
4,634
-------
Total additions 10,830
-------
Deductions from net assets attributed to:
Net depreciation in the fair value of investment
in Homestake Mining Company Stock Fund 595
Benefits paid to participants 4,497
Transfers out to other plans 48
-------
Total deductions 5,140
-------
Net increase 5,690
Net assets available for benefits:
Beginning of year 52,411
-------
End of year $58,101
=======
</TABLE>
The accompanying notes are an integral part of these
financial statements.
4
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of Plan:
The following description of the Homestake Mining Company Savings Plan
(the Plan) provides only general information. Participants should refer
to the full Plan for a more complete description of the Plan's
provisions.
General:
The Plan is a defined contribution profit sharing plan (designed to be
qualified under Internal Revenue Code Sections 401(a) and 401(k))
covering all full-time salaried employees of Homestake Mining Company
and its subsidiaries (the Company) who have completed three months of
service, and all temporary employees who have completed one year of
service. Hourly employees of the Company who are not covered by
collective bargaining agreements and have completed three months of
service are also eligible to participate in the Plan. The Plan is
subject to the provisions of the Employee Retirement Income Security Act
of 1974 (ERISA), as amended.
The Plan is administered by the Company through a committee of
management.
Wells Fargo Bank was the Plan's trustee through December 31, 1995, and
was replaced by BZW Global Trust Company, N.A., a unit of Barclays Bank
P.L.C., effective January 1, 1996. (Wells Fargo's 401(k) Masterworks
division was sold to Barclays Bank P.L.C.) In addition, BZW Barclays
Global Fund Advisors replaced Wells Fargo Bank as the investment advisor
effective January 1, 1996.
Contributions:
Participation is voluntary. Participants may make pre-tax or after-tax
contributions of between 1% and 15% (between 1% and 14% pre-tax) of
compensation. Participant contributions not exceeding 6% of wages or of
salary are matched by the Company. Effective January 1, 1995, the
Company matching rate was increased to 100% from 75%.
Participants may also contribute to the Plan amounts previously
contributed to another qualified plan. These contributions are not
matched by the Company.
Each participant may cause some or all of its current or cumulative
contributions, including any amounts contributed by the Company to match
contributions, to be invested in one or more of the investments made
available through the Plan.
5
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of Plan, continued:
Participants' Accounts:
Separate accounts are maintained for each participant. Each
participant's account is directly credited with the participant's
contribution and the Company's matching contribution. Net earnings from
each investment fund, including appreciation (depreciation) in fair
value, are allocated to each participant's account based on the ratio
which the participant's account balance in that investment fund bears to
the total of all participants' account balances in that investment fund.
Vesting:
Participant contributions and any income (loss) thereon are fully vested
at all times. Company contributions and any income (loss) thereon are
vested 60% after three years of service, 80% after four years of
service, and 100% after five years of service, on attainment of age 65,
or on the occurrence of death or disability.
Payment of Benefits:
The Plan permits withdrawal of after-tax contributions.
The Plan permits withdrawal of pre-tax contributions upon:
(1) Termination of employment;
(2) Attainment of age 59 1/2;
(3) Death (with vested account balance paid to designated
beneficiary);
(4) Hardship.
The Plan permits withdrawal of vested Company matching contributions
made prior to January 1, 1994; however, the right of the participant who
makes such a withdrawal to continue participating in the Plan is
suspended for twelve months.
6
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of Plan, continued:
Payment of Benefits, continued:
Distribution of benefits, except for certain participants that are
required to receive annuities, can be in the form of a single-lump-sum
cash payment, a portion paid in a lump-sum and the remainder paid later,
or by periodic installments.
Participant Loans Receivable:
Participants may borrow from their vested accounts $1,000 to $50,000
limited to 50% of the value of such accounts. The loan term cannot
exceed five years unless the loan is for the purchase of a principal
residence, in which case, it cannot exceed ten years. These loans bear
interest at bank prime rate plus 1%. Loans are collateralized by the
borrower's note and vested interest in the Plan and repayments are made
on at least a monthly basis through payroll deductions.
Forfeitures:
Forfeitures of unvested Company contributions for terminated employees
can be utilized to restore participants' accounts, to pay plan fees and
expenses, to offset company matching contributions or allocated to
participants.
2. Significant Accounting Policies:
Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of net assets available for
benefits at the date of the financial statements and the reported
amounts of changes in net assets available for benefits during the
reporting period. Actual results could differ from those estimates.
Basis of Accounting:
The financial statements of the Plan are prepared under the accrual
basis of accounting in accordance with generally accepted accounting
principles.
7
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
2. Significant Accounting Policies, continued:
Investment Valuation and Income Recognition:
Shares and units in investment funds are valued at quoted market prices,
representing the net asset value of the shares or units held by the Plan
at year end. Guaranteed investment contracts are stated at contract
value (cost plus accrued interest). Participant notes receivable are
valued at cost which approximates market value.
Purchases and sales of securities are recorded on a trade-date basis,
utilizing the average cost method in determining the basis of
investments sold. Interest income is recorded on the accrual basis.
Dividends are recorded on the ex-dividend date.
Withdrawals:
Withdrawals of securities from the Homestake Mining Company Common Stock
Fund may be made in cash, common stock, or both, and are reported at
market valuation. Withdrawals from the Wells Fargo Asset Allocation
Fund, Wells Fargo Lifepath Funds, Neuberger & Berman Guardian Trust
Fund, Templeton Foreign Fund, Wells Fargo Stagecoach S&P 500 Stock Fund,
and Fixed Income Fund are made in cash.
Net Appreciation (Depreciation) in Fair Value of Investments:
The Plan presents in the statement of changes in net assets available
for benefits the net appreciation (depreciation) in the fair value of
its investments, which consists of realized gains (losses) and the
unrealized appreciation (depreciation).
3. Concentration of Investments:
A significant portion of the Plan's assets are invested in the Homestake
Mining Company Common Stock Fund and are, therefore, subject to
fluctuations in the market value of such stock, which is, in turn,
impacted by the price of gold.
8
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
4. Plan Termination:
Although the Company has not expressed any intent to do so, it has the
right under the Plan and subject to applicable law, to discontinue its
contributions at any time and to terminate the Plan. In the event of
Plan termination, all accumulated plan benefits will be fully vested and
will be distributed to participants based on their respective account
balances.
5. Reclassifications:
Certain reclassifications were made to 1994 balances to conform with the
1995 presentation, with no effect on the net assets available for
benefits or net change in net assets available for benefits, as
previously reported.
6. Plan Tax Status:
The Plan obtained its latest determination letter in July 1995, in which
the Internal Revenue Service stated that the Plan, as then designed, was
in compliance with Sections 401(a) and 401(k) of the Internal Revenue
Code. The Plan has been amended since receiving the determination
letter; however, the Plan administrator and the Plan's tax counsel are
not aware of circumstances creating a material risk of Plan
disqualification. Therefore, no provision for income taxes has been
included in the Plan's financial statements.
Participants are not subject to federal income taxes on their pre-tax
contributions, Company matching contributions, or investment earnings
allocated to their accounts until withdrawals are made.
7. Related Party Transactions:
Certain Plan investments are units in investment funds managed by the
Trustee. Therefore, these transactions are transactions with a
party-in-interest.
9
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
8. Investments:
Investments at December 31, 1995 and 1994 are comprised of the following
(in thousands):
<TABLE>
<CAPTION>
Number Value Reported
of Per Value
1995: Units Unit (in thousands)
- ---- ------- ------- ---------
<S> <C> <C> <C>
Wells Fargo Bank Investment Funds, at fair value:
Wells Fargo Asset Allocation Fund 507,334 $19.24 $ 9,761
Wells Fargo Lifepath Funds 421,389 11.39-12.93 5,046
Wells Fargo Income Accumulation Fund 839,520 12.42 10,429
-------
25,236
Mutual Funds, at fair value:
Neuberger & Berman Guardian Trust Fund 102,558 13.81 1,416
Templeton Foreign Fund 43,529 9.19 400
Wells Fargo Stagecoach S&P 500 Stock Fund 442,004 13.44 5,941
------
7,757
Fixed Income Fund, Guaranteed Investment Contracts,
at contract value:
Allstate Life Insurance Company 2,014,325 1.00 2,014
Bankers Trust Company 3,416,528 1.00 3,417
Crown Life Insurance Company 1,041,937 1.00 1,042
John Hancock Mutual Life Insurance Company 3,013,143 1.00 3,013
------
9,486
Confederation Life Guaranteed Investment Contracts,
at contract value (see Note 12) 3,090,586 1.00 3,091
------
Homestake Mining Company Stock Fund, at fair value 1,437,671 6.98 10,029
------
Participant loans receivable, at book value, which
approximates fair value - - 2,222
-------
Total investments $57,821
=======
</TABLE>
10
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
8. Investments, continued:
<TABLE>
<CAPTION>
Number Value Reported
of Per Value
1994 Units Unit (in thousands)
- ---- ------- -------- ---------
<S> <C> <C> <C>
Wells Fargo Bank Investment Funds, at fair value:
Wells Fargo Asset Allocation Fund 477,636 $14.88 $7,107
Wells Fargo S&P 500 Stock Fund 253,440 16.45 4,169
Wells Fargo Lifepath Funds 430,268 9.80 4,215
Wells Fargo Income Accumluation Fund 193,434 11.65 2,253
------
17,744
Fixed Income Fund, Guaranteed Investment Contracts,
at contract value:
Allstate Life Insurance Company 2,015,205 1.00 2,015
Massachusetts Mutual Life Insurance Company 2,107,174 1.00 2,107
Bankers Trust Company 3,230,702 1.00 3,231
Canada Life Assurance Company 2,055,325 1.00 2,055
Crown Life Insurance Company 1,168,226 1.00 1,168
John Hancock Mutual Life Insurance Company 2,865,594 1.00 2,866
New York Life Insurance Company 5,541,050 1.00 5,541
------
18,983
Confederation Life Guaranteed Investment Contracts,
at contract value (see Note 12) 3,090,586 1.00 3,091
------
Homestake Mining Company Stock Fund, at fair value 1,354,445 7.50 10,165
------
Participant loans receivable, at book value, which
approximates fair value - - 2,051
-------
Total investments $52,034
=======
</TABLE>
11
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
8. Investments, continued:
All earnings on the investment funds are reinvested in and credited to
each fund daily. These earnings include interest, dividends, and
appreciation (depreciation) in fair value.
The Asset Allocation Fund invests in a changing mix of stocks, bonds,
and money market securities and aims for a high level of total return
over the long term, consistent with reasonable risk. The Lifepath Funds
invest in a changing mix of US and international stocks, bonds, and
money market securities and aim for greater growth potential in early
years and then gradually reduce risk to exposure over time. The
Neuberger & Berman Guardian Trust Fund is a growth and income fund that
emphasizes investments in stocks of established, high quality companies
considered to be under valued in comparison to stocks of similar
companies. The Templeton Foreign Fund seeks long-term capital growth
through a flexible policy of investing in stocks and debt obligations of
companies and governments outside the United States. The Wells Fargo
Stagecoach S&P 500 Stock Fund is a mutual fund that invests in
substantially the same stocks in substantially the same percentages as
the Standard & Poor's 500 Composite Stock Price Index and seeks to
approximate as closely as practicable the rate of return of that index.
The Homestake Mining Company Stock Fund invests in shares of Homestake
Mining Company.
The Fixed Income Fund consists of guaranteed investment contracts
previously purchased by the Plan from bank and insurance companies and
shares in the Wells Fargo Income Accumulation Fund. Guaranteed
investment contracts of Confederation Life Insurance Company have been
separated from the Fixed Income Fund into a separate fund as detailed in
Note 12.
9. Administrative Expenses:
Certain costs associated with administering the Plan are paid directly
by the Company.
12
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
10. Net Assets Available for Benefits by Investment Type (in thousands),
continued:
<TABLE>
<CAPTION>
Neuberger Wells Confederation
Wells Fargo Wells & Berman Fargo Life
Asset Fargo Guardian Templeton Stagecoach Fixed Guaranteed
Allocation Lifepath Trust Foreign S&P 500 Income Investment
Fund Funds Fund Fund Fund Fund Contracts
------------ -------- --------- ---------- ---------- ------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
December 31, 1995:
- -----------------
ASSET
Cash and cash equivalents - - - - - $ 11 -
------- ------- ------- ----- -------- ---- -------
Investments, at fair value:
Fund investments held by
trustee $ 9,761 $ 5,046 $ 1,416 $ 400 $ 5,941 - -
Common stock of the
Company - - - - - - -
Participant loans
receivable - - - - - - -
------- ------- ------- ----- ------- ---- -------
9,761 5,046 1,416 400 5,941 - -
------- ------- ------- ----- ------- ---- -------
Investments, at contract value:
Fund investments held
by trustee - - - - - 19,915 $ 3,091
------- ------- ------- ----- ------- ------ -------
Total assets 9,761 5,046 1,416 400 5,941 19,926 3,091
LIABILITIES
Amounts due to brokers
for securities purchased - - - - - 1 -
------- ------- ------- ----- ------- -------- -------
Net assets available
for benefits $ 9,761 $ 5,046 $ 1,416 $400 $ 5,941 $ 19,925 $ 3,091
======= ======= ======= ===== ======= ======== =======
<CAPTION>
Homestake
Mining
Company Participant Short Term
Stock Loan Investment
Fund Fund Account Total
--------- ------------- ----------- -----
<S> <C> <C> <C> <C>
December 31, 1995:
- -----------------
ASSET
Cash and cash equivalents $ 576 - $ 20 $ 607
------ ------- ---- ------
Investments, at fair value:
Fund investments held by
trustee - - - 22,564
Common stock of
the Company 10,029 - - 10,029
Participant loans
receivable - 2,222 - 2,222
------ ----- ---- ------
10,029 2,222 - 34,815
------ ----- ---- ------
Investments, at contract value:
Fund investments held
by trustee - - - 23,006
------ ----- ---- ------
Total assets 10,605 2,222 20 58,428
LIABILITIES
Amounts due to brokers
for securities purchased 326 - - 327
------- ------- ----- --------
Net assets available
for benefits $10,279 $ 2,222 $ 20 $ 58,101
======= ======= ===== ========
</TABLE>
13
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
10. Net Assets Available for Benefits by Investment Type (in thousands),
contiinued:
<TABLE>
<CAPTION>
Wells Homestake
Wells Fargo Fargo Wells Mining
Asset S&P 500 Fargo Company
Allocation Stock Lifepath Stock
December 31, 1994: Fund Fund Funds Fund
- ------------------ ----------- ------ --------- ----------
<S> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents - - - $ 413
-------- -------- -------- -------
Investments, at fair value:
Fund investments held
by trustee $ 7,107 $ 4,169 $ 4,215 -
Company stock of the
Company - - - 10,165
Participant loans
receivable - - - -
-------- -------- -------- ------
7,107 4,169 4,215 10,165
-------- -------- -------- ------
Investments, at contract value:
Fund investments held
by trustee - - - -
Receivables:
Participants' contributions 1 1 1 -
-------- -------- -------- ------
Total assets 7,108 4,170 4,216 10,578
LIABILITIES
Amounts due to brokers for
securities purchased - - - -
-------- -------- ------ -------
Net assets available for
benefits $7,108 $4,170 $4,216 $10,578
======== ======== ====== =======
<CAPTION>
Confederation
Life
Participant Fixed Guaranteed Short Term
Loan Income Investment Investment
Fund Fund Contracts Account Total
December 31, 1994:
- ----------------- ---------- ------- ------------ ----------- ------
<S> <C> <C> <C> <C> <C>
Cash and cash equivalents - - - $ 105 $ 518
-------- -------- --------- ----- --------
Investments, at fair value:
Fund investments held
by trustee - - - - 15,491
Common stock of the
Company - - - - 10,165
Participant loans
receivable $ 2,051 - - - 2,051
-------- -------- -------- ----- -------
2,051 - - - 27,707
-------- -------- -------- ----- -------
Investments, at contract value:
Fund investments held
by trustee - $ 21,236 $ 3,091 - 24,327
Receivables:
Participants' contributions - - - - 3
-------- -------- -------- ---- ------
Total assets 2,051 21,236 3,091 105 52,555
LIABILITIES
Amounts due to brokers for
securities purchased - 144 - - 144
-------- -------- -------- ----- -------
Net assets available for
benefits $2,051 $21,092 $3,091 $105 $52,411
======== ======== ======== ===== =======
</TABLE>
14
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(in thousands)
11. Changes in Net Assets Available for Benefits by Investment Type:
During the year ended December 31, 1995, changes in net assets available
for benefits by participant-designated investment types were as follows:
<TABLE>
<CAPTION>
Wells Wells Neuberger Wells
Fargo Fargo Wells & Berman Fargo
Asset S&P 500 Fargo Guardian Templeton Stagecoach
Allocation Stock Lifepath Trust Foreign S&P 500
Fund Fund Funds Fund Fund Fund
---------- ------- -------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest and dividends - - - - - -
Interest on participants' loans - - - - - -
Mutual Fund Income - - - $ 24 $ 38 $ 173
Net appreciation in the fair value of
assets $ 2,070 $ 462 $ 900 62 - 898
Contributions:
Company, in cash 331 93 233 33 15 203
Participants, in cash 511 124 382 56 37 306
Transfers in from other plans 5 1 7 - - -
------- ----- ------ ---- ----- -----
Total additions 2,917 680 1,522 175 90 1,580
Deductions from net assets attributed to:
Net depreciation in the fair value
of investment in Homestake common stock - - - - - -
Benefits paid to participants 482 136 375 8 - 105
Transfers out to other plans - - - - - -
------- ------- ------ ----- ----- ------
Total deductions 482 136 375 8 - 105
------- ------- ------ ----- ----- ------
Interfund transfers 45 (4,815) (317) 1,249 310 4,466
------- ------- ------ ----- ----- ------
Net increase (decrease) 2,480 (4,271) 830 1,416 400 5,941
------- ------- ------ ----- ----- ------
Net assets available for benefits:
Beginning of year 7,281 4,271 4,216 - - -
End of year $ 9,761 - $ 5,046 $ 1,416 $ 400 $ 5,941
======= ======= ======= ======= ===== =======
<CAPTION>
Confederation Homestake
Life Mining
Fixed Guaranteed Company Participant Short Term
Income Investment Stock Loan Investment
Fund Contracts Fund Fund Account Total
-------- ------------- ------ ----------- ---------- ------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Interest and dividends $ 1,241 - $ 140 - $ 2 $ 1,383
Interest on participants' loans - - - $ 186 - 186
Mutual Fund Income - - - - - 235
Net appreciation in the fair value of assets - - - - - 4,392
Contributions:
Company, in cash 776 - 253 - (111) 1,826
Participants, in cash 917 - 346 - 2,679
Transfers in from other plans 42 - 74 - - 129
------- --------- ------ ------ ----- ------
Total additions 2,976 - 813 186 (109) 10,830
Deductions from net assets attributed to:
Net depreciation in the fair value
of investment in Homestake common stock - - 595 - - 595
Benefits paid to participants 2,906 - 326 148 11 4,497
Transfers out to other plans 26 - 22 - - 48
-------- -------- -------- ------- ------- ------
Total deductions 2,932 - 943 148 11 5,140
-------- -------- -------- ------- ------- -------
Interfund transfers (1,882) - 802 191 (49) -
-------- -------- -------- ------- ------- -------
Net increase (decrease) (1,838) - 672 229 (169) 5,690
-------- -------- -------- ------- ------- -------
Net assets available for benefits:
Beginning of year 21,763 3,091 9,607 1,993 189 52,411
End of year $ 19,925 $ 3,091 $ 10,279 $ 2,222 $ 20 $58,101
======== ======== ======== ======= ====== =======
</TABLE>
15
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
12. Confederation Life Guaranteed Investment Contracts:
Confederation Life Insurance Company (CLIC) was seized by insurance
regulators on August 12, 1994, to protect the financial interest of all
policyholders. The Plan's investment contracts with CLIC will be paid
out as part of a rehabilitation plan, the timing and value of which is
uncertain at this time.
On August 18, 1994, the Plan suspended withdrawals and transfers by
participants of amounts in the Plan held by CLIC and froze the value of
its CLIC guaranteed investment contracts at their then-current book
values (cost plus accrued interest through August 15, 1994). The Plan
has not accrued any interest on these contracts since they were frozen.
These frozen contracts have been separated from the Fixed Income Fund
into a separate frozen fund.
Until a Rehabilitation Plan is finalized and approved, or other
additional relevant information becomes available, the ultimate effect
on the Plan's CLIC investments and the participants' ability to withdraw
funds from CLIC cannot be determined. Based on the information received
from the Rehabilitator and the Plan's advisors as of June 20, 1996, Plan
management believes that such effect would not result in a material
impact on the Plan's financial statements. Consequently, adjustments, if
any, which may arise as a result of the ultimate outcome of the
rehabilitation have not been reflected in the accompanying financial
statements.
13. Subsequent Events:
Amendment No. 4 to the Plan was executed on April 23, 1996 and is
effective from January 1, 1996. This amendment provides for full
vesting to participants' accounts that are terminated as part of
certain specified reductions in labor force on the date of such
termination.
A new fund was added to the investment options of the Plan on January
15, 1996. The Money Market Fund invests in high-quality securities
maturing in 13 months or less.
16
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
Item 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
as of December 31, 1995
<TABLE>
<CAPTION>
(c) Description of
Investment including
(b) Identity of Maturity Date, Rate
Issuer, Borrower, of Interest, (e) Current
Lessor, or Collateral, Par (d) Cost Value
(a) Similar Party or Maturity Value (in thousands) (in thousands)
- --- ------------------------------- -------------------------------- -------------- ------------
<S> <C> <C> <C> <C>
Allstate Life Insurance Company GIC (maturing 11/12/98, 5.46%) $ 2,014 $ 2,014
Bankers Trust Company GIC (maturing 09/30/00, 5.87%) 3,417 3,417
Crown Life Insurance Company GIC (maturing 03/03/98, 4.04%) 1,042 1,042
John Hancock Mutual Life GIC (maturing 06/30/98, 5.16%)
Insurance Company 3,013 3,013
* Wells Fargo Bank Wells Fargo Income Accumulation
Fund (839,520 units) 10,428 10,429
Confederation Life Insurance GIC (frozen 08/15/94, originally maturing
Company 01/02/95, 8.70%) 1,052 1,052
GIC (frozen 08/15/94, originally maturing
07/24/95, 9.14%) 1,005 1,005
GIC (frozen 08/15/94, originally maturing
03/15/96, 8.54%) 1,034 1,034
* Wells Fargo Bank Wells Fargo Asset Allocation Fund
(507,334 units) 8,023 9,761
Wells Fargo Lifepath 2000 Fund
(153,450 units) 1,536 1,748
Wells Fargo Lifepath 2010 Fund
(94,848 units) 970 1,133
Wells Fargo Lifepath 2020 Fund
(102,615 units) 1,048 1,266
Wells Fargo Lifepath 2030 Fund
(37,497 units) 390 473
Wells Fargo Lifepath 2040 Fund
(32,979 units) 353 426
Wells Fargo Stagecoach S&P 500 Stock Fund
(442,004 units) 5,094 5,941
* Wells Fargo Bank Homestake Mining Company Stock Fund
(1,437,671 units) 10,749 10,029
Neuberger & Berman Management, Inc. Neuberger & Berman Guardian Trust
(102,558 units) 1,386 1,416
Franklin Templeton Distributors, Inc. Templeton Foreign Fund
(43,529 units) 400 400
* Participant notes Repayable over a term of up to five
years at an interest rate set
at the time of issue of the loan.
Rate during 1995 ranged from
5.5% to 12.6% 2,222 2,222
* Represents party-in-interest to Plan
Note: GIC has been used above as an abbreviation for Guaranteed Investment Contract.
</TABLE>
17
<PAGE>
HOMESTAKE MINING COMPANY SAVINGS PLAN
Item 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
for the year ended December 31, 1995
(in thousands)
<TABLE>
<CAPTION>
(f) Expenses
(b) Description of Assets Incurred
(a) Identity of (Include Interest Rate and (c) Purchase (d) Selling (e) Lease with
Party Involved Maturity in Case of a Loan) Price Price Rental Transaction
- --------------- -------------------------- ------------ ----------- --------- ---------------
<S> <C> <C> <C> <C> <C>
Wells Fargo Bank Homestake Mining Company Stock Fund $20,192 - - -
- $19,914 - -
Wells Fargo Bank Fixed Income Fund 19,469 - - -
- 21,606 - -
Wells Fargo Bank S&P 500 Stock Fund - 4,867 - -
Wells Fargo Bank Stagecoach S&P 500 Stock Fund 5,631 - - -
<CAPTION>
(h) Current
Value of (i) Net
(b) Description of Assets Asset on Gain
(a) Identity of (Include Interest Rate and (g) Cost Transaction or
Party Involved Maturity in Case of a Loan) of Asset Date (Loss)
- --------------- ----------------------------- --------- --------------- --------
<S> <C> <C> <C> <C>
Wells Fargo Bank Homestake Mining Company Stock Fund - - -
$19,714 $19,914 $200
Wells Fargo Bank Fixed Income Fund - - -
21,591 21,606 15
Wells Fargo Bank S&P 500 Stock Fund 4,373 4,867 494
Wells Fargo Bank Stagecoach S&P 500 Stock Fund - - -
</TABLE>
18
<PAGE>
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in Post-Effective Amendment No. 5
to the Registration Statement of Homestake Mining Company on Form S-8 (File No.
2-90903) of our report dated June 20, 1996, on our audits of the financial
statements and financial statement schedules of the Homestake Mining Company
Savings Plan as of December 31, 1995 and 1994, and for the year ended December
31, 1995, which report is included in this Annual Report on Form 11-K.
/s/ Coopers & Lybrand L.L.P.
- ----------------------------
COOPERS & LYBRAND L.L.P.
San Francisco, California
June 24, 1996
