Franklin Gold and Precious Metals Fund Advisor Class (FGADX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-01700

Franklin Gold and Precious Metals Fund

(Exact name of registrant as specified in charter)

One Franklin Parkway

, San Mateo, CA  94403-1906

(Address of principal executive offices) (Zip code)

Alison Baur, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code:(650)312-2000

Date of fiscal year end: 7/31

Date of reporting period: 1/31/23

Item 1.  Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.

Not Applicable

.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Gold

and

Precious

Metals

Fund

January

31,

2023

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

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FDIC

Insured

May

Lose

Value

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Bank

Guarantee

franklintempleton.com

Semiannual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

January

31,

2023,

stocks

rallied

amid

signs

of

a

more

stable

global

economy

despite

pressure

from

higher

inflation

and

interest

rates.

Prices

of

oil

and

other

commodities

that

spiked

after

Russia’s

invasion

of

Ukraine

returned

to

or

near

prior

levels,

helping

to

curb

inflation.

China

ended

its

strict

zero-COVID

policy,

which

investors

hoped

would

boost

global

economic

growth,

and

China’s

economy

grew

on

an

annual

basis

in

2022’s

last

two

quarters.

A

potentially

slower

pace

of

U.S.

Federal

Reserve

(Fed)

interest-rate

hikes

and

improved

developing

nation

economies

boosted

emerging

markets.

Eurozone

economies

grew

slowly

in

2022’s

second

half.

The

European

Central

Bank

increased

its

key

rate

to

combat

inflation.

Although

the

war

in

Ukraine

and

sanctions

against

Russia

disrupted

Europe’s

natural

gas

supply,

alternative

sources

and

lower

use

helped

maintain

supplies

at

historically

high

levels.

In

this

environment,

stocks

in

global

developed

markets

excluding

the

U.S.

and

Canada,

as

measured

by

the

MSCI

Europe,

Australasia

and

Far

East

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

+9.52%

total

return

for

the

period.

1

The

price

of

gold

rose

9.2%

during

the

six-month

period

under

review,

closing

the

period

at

$1,928

per

troy

ounce,

with

most

of

the

rally

occurring

in

the

latter

half

as

a

prolonged

downtrend

reversed

course.

2

Gold

reached

a

30-month

low

in

late

September

2022

as

it

was

pressured

in

part

by

tightening

Fed

monetary

policy

and

a

resulting

strong

U.S.

dollar,

but

prices

began

to

recover

in

November

and

closed

2022

at

a

six-month

high,

then

climbed

further

in

January

2023.

Among

the

catalysts

for

gold’s

eventual

upside

move

was

its

inverse

correlation

to

the

trade-

weighted

U.S.

dollar

as

the

world’s

reserve

currency

ebbed

from

a

20-year

high

in

September

2022;

cooler

U.S.

inflation

data

that

spurred

expectations

of

a

slowdown

in

monetary

tightening;

and

softening

global

macroeconomic

data

and

volatile

equities

which

spent

most

of

the

period

in

bear

market

territory.

In

this

environment,

gold

stocks,

as

measured

by

the

FTSE

®

Gold

Mines

Index,

posted

a

total

return

of

+27.18%

for

the

six-month

period.

1

We

are

committed

to

our

long-term

perspective

and

disciplined

investment

approach

as

we

conduct

a

rigorous,

fundamental

analysis

of

securities

with

a

regular

emphasis

on

investment

risk

management.

We

believe

active,

professional

investment

management

serves

investors

well.

We

also

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

Franklin

Gold

and

Precious

Metals

Fund’s

semiannual

report

includes

more

detail

about

prevailing

conditions

and

discussions

about

investment

decisions

during

the

period.

Please

remember

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin

Templeton,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Edward

D.

Perks,

CFA

President

and

Chief

Executive

Officer

-

Investment

Management

Franklin

Gold

and

Precious

Metals

Fund

This

letter

reflects

our

analysis

and

opinions

as

of

January

31,

2023,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

1.

Source:

Morningstar.

2.

Source:

Bloomberg

LP.

Based

on

spot

prices

quoted

in

U.S.

dollars

per

troy

ounce.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Franklin

Gold

and

Precious

Metals

Fund

3

Performance

Summary

8

Your

Fund’s

Expenses

10

Financial

Highlights

and

Schedule

of

Investments

11

Financial

Statements

20

Notes

to

Financial

Statements

24

Shareholder

Information

38

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Franklin

Gold

and

Precious

Metals

Fund

This

semiannual

report

for

Franklin

Gold

and

Precious

Metals

Fund

covers

the

period

ended

January

31,

2023

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation.

Its

secondary

goal

is

to

provide

shareholders

with

current

income

through

dividends

or

interest

received

from

its

investments.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

securities

of

gold

and

precious

metals

operation

companies.

The

Fund

primarily

invests

in

equity

securities,

primarily

common

stock.

The

Fund

also

invests

in

American,

Global

and

European

Depositary

Receipts.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+13.17%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Fund’s

primary

benchmark,

the

sector-specific

FTSE

Gold

Mines

Index,

which

comprises

companies

whose

principal

activity

is

gold

mining,

posted

a

+27.18%

cumulative

total

return.

1

The

Fund’s

secondary

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

-0.44%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

8

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR,

posted

a

+2.45%

total

return

for

the

six

months

ended

January

31,

2023.

1

Despite

continued

challenges

from

elevated

inflation

and

higher

interest

rates,

stocks

gained

amid

signs

of

resilience

in

the

global

economy.

The

price

of

oil

fell,

and

several

other

commodities

that

were

disrupted

by

Russia’s

invasion

of

Ukraine

stabilized

at

or

near

their

pre-war

prices,

easing

inflationary

pressure.

China

ended

its

restrictive

zero-

COVID

policy,

prompting

investor

optimism

that

a

return

to

normal

conditions

would

benefit

global

growth.

In

the

U.S.,

gross

domestic

product

growth

resumed

in

the

second

half

of

2022,

rebounding

from

a

contraction

in

the

first

half

of

the

year.

Increasing

consumer

and

government

spending,

rising

inventories

and

strong

nonresidential

fixed

investment

boosted

economic

growth.

Meanwhile,

inflation,

which

remained

heightened

relative

to

recent

decades,

showed

signs

of

easing.

The

annual

inflation

rate,

as

measured

by

the

consumer

price

index,

declined

for

each

of

the

final

five

months

of

2022.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

three

times

during

the

period

to

end

at

a

range

of

4.25%–4.50%.

In

its

December

2022

meeting,

the

Fed

raised

interest

rates

by

50

basis

points

(bps),

a

decrease

from

the

previous

75

bps

raise,

although

it

stated

it

anticipates

ongoing

interest

rate

increases.

The

Fed

noted

that

inflation

remained

elevated,

spending

and

production

grew,

job

growth

remained

robust

and

the

unemployment

rate

continued

to

be

low.

Furthermore,

the

Fed

maintained

its

policy

of

reducing

its

accumulated

bond

holdings

and

decreasing

the

size

of

its

balance

sheet.

Economies

in

the

eurozone

maintained

a

slow

growth

rate

in

2022’s

third

and

fourth

quarters.

The

European

Central

Bank

continued

to

raise

interest

rates

during

the

six-month

period,

opting

to

increase

its

benchmark

rate

at

each

of

its

three

Geographic

Composition

1/31/23

%

of

Total

Net

Assets

Canada

53.4%

Australia

27.5%

South

Africa

6.0%

Burkina

Faso

5.3%

United

States

3.9%

Egypt

1.7%

Turkey

1.4%

Other

0.4%

Short-Term

Investments

&

Other

Net

Assets

0.4%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

15

.

Franklin

Gold

and

Precious

Metals

Fund

4

franklintempleton.com

Semiannual

Report

meetings

to

fight

growing

inflation.

While

the

ongoing

war

in

Ukraine

and

subsequent

sanctions

against

Russia

disrupted

the

supply

of

natural

gas

to

Europe,

alternate

supplies

and

reduced

industrial

consumption

helped

maintain

gas

inventories

at

historically

high

levels.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

+11.04%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

+5.09%

total

return

for

the

six-month

period.

1

Japan’s

economy

weakened

in

2022’s

third

quarter

amid

tepid

consumer

spending

and

decelerating

growth

in

business

investment.

China’s

economy

grew

on

an

annual

basis

in

the

third

and

fourth

quarters

of

2022.

In

December

2022,

China

loosened

its

strict

zero-COVID

policy,

lifting

a

potential

barrier

to

continued

growth

and

driving

gains

in

China’s

equity

market.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

+4.92%

total

return

for

the

six

months

under

review.

1

Indications

the

Fed

may

reduce

the

pace

of

interest

rate

increases

boosted

stocks

in

developing

nations

that

are

adversely

affected

by

high

interest

rates

in

the

U.S.

The

U.S.

dollar

declined

slightly

against

many

emerging

market

currencies,

easing

pressure

on

countries

that

rely

on

imported

commodities

denominated

in

U.S.

dollars.

Improving

macroeconomic

conditions

also

led

to

increased

investor

interest

in

emerging

markets

late

in

the

reporting

period.

Precious

Metals

Sector

Overview

The

price

of

gold

rose

9.2%

during

the

six-month

period

under

review,

closing

the

period

at

$1,928

per

troy

ounce,

with

most

of

the

rally

occurring

in

the

latter

half

as

a

prolonged

downtrend

reversed

course.

2

Gold

reached

a

30-month

low

in

late

September

2022

as

it

was

pressured

in

part

by

tightening

Fed

monetary

policy

and

a

resulting

strong

U.S.

dollar,

but

prices

began

to

recover

in

November

and

closed

2022

at

a

six-month

high,

then

climbed

further

in

January

2023.

Calendar

year

2022

was

volatile,

with

gold

prices

nearing

a

record

high

in

March

before

retreating

for

seven

consecutive

months

as

the

Fed

was

eventually

joined

by

other

major

central

banks

in

aggressively

hiking

interest

rates.

Among

the

catalysts

for

gold’s

eventual

upside

move

was

its

inverse

correlation

to

the

trade-weighted

U.S.

dollar

as

the

world’s

reserve

currency

ebbed

from

a

20-year

high

in

September

2022;

cooler

U.S.

inflation

data

that

spurred

expectations

of

a

slowdown

in

monetary

tightening;

and

softening

global

macroeconomic

data

and

volatile

equities

which

spent

most

of

the

period

in

bear

market

territory.

Other

drivers

included:

heightened

geopolitical

tensions

and

widespread

trade

restrictions

stemming

from

Russia’s

war

on

Ukraine,

where

the

potential

threat

of

nuclear

retaliation

emerged

as

a

worst-case

scenario;

deteriorating

U.S.-China

relations;

and

fears

that

the

impact

of

China’s

COVID-19

wave

might

damage

its

prospects

for

economic

recovery

or

spread

beyond

its

borders.

Precious

Metals

Prices

(7/31/22–1/31/23

)*

*Source:

Bloomberg

LP.

Amounts

shown

are

based

on

spot

prices

quoted

in

U.S.

dollars

per

troy

ounce.

For

illustrative

purposes

only;

not

representative

of

the

Fund’s

portfolio

composition

or

performance.

Elsewhere

in

the

precious

metals

markets,

the

prices

of

silver,

platinum

and

palladium—all

three

of

which

are

linked

more

closely

to

industrial

demand

than

gold—had

mixed

results:

silver

and

platinum

outperformed

gold

while

palladium

prices

declined.

Platinum

and

palladium

showed

a

wide

differential

as

they

faced

competing

tensions

of

supply

scarcity

versus

reduced

industrial

demand,

with

global

manufacturing

activity

beginning

to

shrink,

including

contraction

in

the

U.S.

and

other

major

economies.

We

have

also

begun

to

see

some

switching

from

palladium

to

platinum

in

newer

catalytic

converters

given

the

record

high

spread

between

the

metals

over

the

past

couple

years.

The

first

half

of

the

semiannual

period

was

difficult

for

industrial

metals

due

to

perceived

demand

weakness

and

despite

various

threats

to

supply.

Copper

and

most

other

base

metals

depreciated

into

2022’s

fourth

quarter

before

staging

solid

comebacks

through

January

2023,

as

fears

2.

Source:

Bloomberg

LP.

Based

on

spot

prices

quoted

in

U.S.

dollars

per

troy

ounce.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Franklin

Gold

and

Precious

Metals

Fund

5

franklintempleton.com

Semiannual

Report

of

a

looming

global

recession

eased

and

China’s

factory

sector

was

expected

to

begin

emerging

from

its

COVID-

19-induced

stagnation.

Copper

faced

new

supply

risks,

and

futures

rallied

in

the

final

three

months

of

the

reporting

period

and

posted

a

gain

for

the

period

as

a

whole.

Many

industrial

metals,

including

copper,

benefited

from

Chinese

government

policies

designed

to

aid

the

country

property

sector,

and

extended

the

gains

following

the

dismantling

of

the

country’s

“zero-COVID”

virus

controls.

Against

this

backdrop,

most

metals

and

mining

equities

rallied

broadly

and

solidly

late

in

the

period,

but

for

some

it

was

not

enough

to

offset

earlier

declines,

as

was

the

case

for

copper-

and

platinum/palladium-focused

miners,

many

of

which

remained

in

negative

territory

through

the

end

of

January

2023.

Investment

Strategy

Gold

and

precious

metals

operation

companies

include

companies

that

mine,

process,

or

deal

in

gold

or

other

precious

metals,

such

as

silver,

platinum

and

palladium,

including

mining

finance

and

exploration

companies

as

well

as

operating

companies

with

long-

or

medium-life

mines.

The

Fund

may

buy

securities

of

gold

and

precious

metals

operation

companies

located

anywhere

in

the

world

and

in

general

invests

predominantly

in

non-U.S.

companies.

The

Fund

may

invest

in

companies

without

regard

to

market

capitalization,

and

may

heavily

invest

in

small-

and

mid-

capitalization

companies.

We

look

for

companies

with

low

cost

reserves

and

experienced

management

teams

with

established

track

records,

particularly

focusing

on

companies

with

long

life

production

profiles,

expandable

resource

bases,

and

active

exploration

programs

that

can

potentially

drive

future

reserve

and

production

growth.

Manager’s

Discussion

During

the

six

months

under

review,

the

Fund’s

core

gold

mining

industry

holdings

(averaging

approximately

three-

quarters

of

total

net

assets)

performed

well

and

provided

the

bulk

of

the

overall

absolute

gain.

Among

the

key

contributors

were

some

of

our

largest

holdings,

including

Alamos

Gold,

Perseus

Mining,

AngloGold

Ashanti,

Barrick

Gold

and

Endeavour

Mining.

The

Fund

also

held

a

handful

of

outliers

to

the

upside—including

key

contributors

Torex

Gold

Resources

and

Ascot

Resources—that

had

a

leveraged

response

to

rising

gold

prices.

They

nearly

doubled

or

more

than

doubled

in

value

during

the

period

after

delivering

very

weak

performance

in

prior

periods.

In

particular,

Africa-focused

gold

producer

Perseus

increased

its

mineral

resource

and

ore

reserve

estimates

for

its

Nkosuo

Project

in

Ghana,

which

will

increase

the

life

of

the

company’s

nearby

Edikan

gold

mine

operation

by

18

to

24

months,

extending

it

into

fiscal-year

2027.

The

latest

findings

ensure

operations

can

continue

while

Perseus

conducts

further

exploration

on

the

recently

acquired

Agyakusu

exploration

permit

and

two

other

adjoining

exploration

permits

that

are

under

option

to

Perseus.

The

company

believes

the

discovery

of

additional

ore

reserves

within

trucking

distance

of

existing

infrastructure

is

a

highly

cost-effective

way

to

create

value

for

shareholders.

Solid

contribution

from

their

newest

mine,

Yaouré

in

the

Ivory

Coast,

complements

the

improved

profile

at

Edikan

and

provides

a

solid

base

of

cash

generation

to

consider

other

gold

mine

construction

projects.

Our

much

smaller

allocation

in

diversified

metals

and

mining

companies

(approximately

10%

of

the

portfolio)

provided

a

secondary

boost

to

absolute

returns

as

these

holdings

collectively

appreciated

more

so

than

the

Fund’s

solely

gold-focused

companies.

This

group

contained

a

relatively

even

split

of

net

contributors

and

detractors,

with

the

poor

performers

being

more

than

offset

by

sizeable

rallies

in

Ivanhoe

Mines

and

Chalice

Mining,

which

were

also

our

two

largest

positions

in

the

sub-industry.

Ivanhoe

Mines,

a

diversified

metal

producer

with

a

copper

focus,

announced

that

its

Kamoa-Kakula

Mining

Complex

in

the

Democratic

Republic

of

Congo

set

a

new

copper

production

record

in

the

third

quarter

of

2022

as

ongoing

optimization

work

successfully

targeted

higher-grade

ore,

while

its

Phase

3

expansion

at

the

mine

site

was

progressing

well.

Management

continued

to

debottleneck

its

milling

and

refining

operations

to

help

boost

production,

while

keeping

a

focus

on

discovering

and

developing

additional

high-grade

ore

bodies

to

provide

a

supply

of

metals

critically

needed

for

the

electrification

of

the

global

economy

and

infrastructure.

In

South

Africa,

the

company

continued

to

advance

the

sinking

of

the

second

primary

mine

shaft

at

its

Platreef

palladium,

platinum,

rhodium,

nickel,

copper

and

gold

operation,

and

remained

on

track

for

initial

production

from

the

first

shaft

in

2024.

Portfolio

Composition

1/31/23

%

of

Total

Net

Assets

Gold

79.6%

Diversified

Metals

&

Mining

9.9%

Precious

Metals

&

Minerals

6.4%

Silver

3.0%

Other

0.7%

Short-Term

Investments

&

Other

Net

Assets

0.4%

Franklin

Gold

and

Precious

Metals

Fund

6

franklintempleton.com

Semiannual

Report

Chalice

Mining

is

a

development-stage

miner

with

multiple

projects

throughout

Australia,

including

its

world-class

multi-

metal

Julimar

Project

(nickel,

copper,

cobalt,

platinum

and

gold).

The

company

announced

strong

progress

derisking

the

development

with

encouraging

metallurgical

test

work

and

new

metal

discoveries

along

the

Julimar

Complex

trend.

With

seven

rigs

drilling,

and

several

still

untested

mineralization

targets,

we

believe

there

will

be

a

solid

flow

of

ongoing

news

updates

from

Chalice

in

the

coming

months.

Elsewhere

in

the

portfolio,

incremental

gains

were

realized

in

the

precious

metals

and

minerals;

and

silver

industries.

When

combined,

these

holdings

represented

roughly

10%

of

the

overall

portfolio.

Top

contributor

Impala

Platinum

Holdings

(Implats)

benefited

from

the

rebound

in

platinum

prices

as

well

as

gains

in

nickel,

which

the

company

produces

as

a

byproduct

of

extracting

the

platinum

group

metals.

The

South

African-based

company’s

quarterly

production

report

for

the

July–September

2022

period

showed

roughly

flat

sales

compared

to

the

same

period

in

2021

despite

occasional

power

disruptions

and

maintained

its

forward

guidance

for

fiscal

year

2023.

Conversely,

the

Fund’s

four

holdings

in

copper-focused

miners

failed

to

advance,

and

they

were

led

lower

by

a

sharp

selloff

in

SolGold.

The

rest

of

the

Fund’s

key

detractors

were

individual

stocks

that

reduced

our

gains

in

other

industries.

In

the

gold

industry,

standout

detractors

included

Red

5,

Pantoro,

Lion

One

Metals,

Wiluna

Mining,

St.

Barbara,

Monarch

Mining

and

Pure

Gold

Mining.

Although

Wiluna,

Monarch

and

Pure

Gold

were

relatively

small

portfolio

positions,

the

negative

impact

was

pronounced

since

these

companies

lost

most

of

their

equity

value

over

the

August

2022–January

2023

span

as

all

three

were

forced

to

suspend

mining

operations

and

enter

into

financial

restructuring.

Red

5

was

by

far

the

largest

stock

position

among

the

detractors

mentioned

above.

Red

5

has

undergone

step

changes

in

its

growth

pathway

to

becoming

a

leading

mid-

tier

Australian

gold

producer,

underpinned

by

the

production

start

up

of

a

major

new

long-life,

low-cost

processing

center

at

its

King

of

the

Hills

(KOTH)

Project

in

Western

Australia.

However,

its

share

price

came

under

pressure

due

to

multiple

factors.

First,

it

became

clear

the

company

may

need

additional

funds

to

cover

working

capital

given

lower

gold

prices;

and

second,

COVID-19-related

delays

in

May

and

June

2022

threatened

the

company’s

ability

to

make

debt

repayments

that

were

coming

due

in

December.

Trading

of

the

stock

was

halted

on

the

last

trading

day

of

September,

though

it

resumed

after

Red

5

announced

an

AU$60

million

equity

raise

on

the

first

trading

day

of

October.

Although

slightly

behind

schedule,

the

KOTH

mine

operated

well,

with

the

mill

reaching

commercial

production

in

December.

A

KOTH

process

plant

and

open

pit

mine

expansion

were

already

underway,

highlighting

that

this

will

be

a

major

new

processing

center

in

the

Leonora

region

for

decades,

in

our

view.

Shares

of

Pantoro,

an

Australian

gold

producer

currently

ramping

up

their

second

gold

mine

in

Australia,

traded

lower

as

operating

conditions

remained

challenging

in

Western

Australia.

The

company

raised

AU$28.5

million

in

an

October

2022

placement

to

add

to

working

capital

and

cover

any

cost

overruns

as

its

new

Norseman

mine

ramps

up,

but

in

January

2023

they

made

the

difficult

decision

to

move

the

Halls

Creek

mine

into

care

and

maintenance

status

(closing

the

site

with

the

option

of

reopening

it

in

the

future).

Pantoro

and

Tulla

Resources

(also

a

Fund

holding)—each

50%

owners

of

the

Norseman

mine—confirmed

they

were

in

discussion

to

consolidate

the

camp

but

had

not

finalized

a

deal

as

of

period-end.

Small

single-asset

miners

are

typically

more

sensitive

to

gold

prices

and

company-specific

setbacks

than

their

larger

and

more

diversified

counterparts,

as

was

the

case

with

Pure

Gold.

Pure

Gold,

whose

operations

are

centered

on

a

47-square-kilometer

property

in

Red

Lake,

Ontario,

suffered

a

severe

selloff

despite

an

announced

step-up

in

gold

output

during

2022’s

third

quarter.

Its

sole

asset,

the

PureGold

Mine,

was

forced

to

suspend

on-site

operations

in

October

and

put

the

company

into

CCAA,

the

Canadian

equivalent

to

U.S.

bankruptcy.

Company

management

placed

the

mine

on

Top

10

Holdings

1/31/23

Company

Sub-Industry

%

of

Total

Net

Assets

a

a

Endeavour

Mining

plc

5.3%

Gold

Barrick

Gold

Corp.

5.3%

Gold

Alamos

Gold,

Inc.

4.1%

Gold

Newcrest

Mining

Ltd.

4.1%

Gold

Perseus

Mining

Ltd.

4.0%

Gold

SSR

Mining,

Inc.

3.7%

Gold

Newmont

Corp.

3.1%

Gold

Impala

Platinum

Holdings

Ltd.

2.8%

Precious

Metals

&

Minerals

Red

5

Ltd.

2.6%

Gold

Orla

Mining

Ltd.

2.6%

Gold

Franklin

Gold

and

Precious

Metals

Fund

7

franklintempleton.com

Semiannual

Report

care

and

maintenance

and

withdrew

its

financial

guidance

through

year-end

2022.

This

decision

followed

the

evaluation

of

several

potential

alternative

scenarios

and

became

necessary

because

the

mine

has

not

yet

achieved

consistent

positive

site-level

cash

flow,

notwithstanding

recent

site

optimizations,

reductions

in

operating

costs

and

sequential

quarter-over-quarter

increases

in

production.

Thank

you

for

your

continued

participation

in

Franklin

Gold

and

Precious

Metals

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Stephen

M.

Land,

CFA

Lead

Portfolio

Manager

Frederick

G.

Fromm,

CFA

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

January

31,

2023,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

January

31,

2023

Franklin

Gold

and

Precious

Metals

Fund

8

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

1/31/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+13.17%

+6.97%

1-Year

-9.68%

-14.67%

5-Year

+44.92%

+6.49%

10-Year

-13.94%

-2.04%

Advisor

6-Month

+13.30%

+13.30%

1-Year

-9.46%

-9.46%

5-Year

+46.69%

+7.96%

10-Year

-11.77%

-1.24%

See

page

9

for

Performance

Summary

footnotes.

Franklin

Gold

and

Precious

Metals

Fund

Performance

Summary

9

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund

concentrates

in

the

precious

metals

sector,

which

involves

fluctuations

in

the

prices

of

gold

and

other

precious

metals

and

increased

susceptibility

to

adverse

economic

and

regulatory

developments

affecting

the

sector.

In

times

of

stable

econom-

ic

growth,

traditional

equity

and

debt

investments

could

offer

greater

appreciation

potential

and

the

prices

of

gold

and

other

precious

metals

may

be

adversely

affected.

In

addition,

the

Fund

is

subject

to

the

risks

of

currency

fluctuation

and

political

uncertainty

associated

with

foreign

(non-U.S.)

investing.

Investments

in

emerging

and

frontier

markets

involve

heightened

risks

related

to

the

same

factors,

in

addition

to

those

associated

with

their

relatively

small

size

and

lesser

liquidity.

The

Fund

may

also

heavily

invest

in

smaller

companies,

which

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Investing

in

a

non-diversified

fund

involves

the

risk

of

greater

price

fluctuation

than

a

more

diversified

portfolio.

The

manager’s

portfolio

selection

strategy

is

not

solely

based

on

ESG

considerations,

and

therefore

the

issuers

in

which

the

Fund

invests

may

not

be

considered

ESG-focused

companies.

Integrating

ESG

considerations

into

the

investment

process

is

not

a

guarantee

that

better

performance

will

be

achieved.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Total

Annual

Operating

Expenses

5

Share

Class

A

0.88%

Advisor

0.63%

Your

Fund’s

Expenses

Franklin

Gold

and

Precious

Metals

Fund

10

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

8/1/22

Ending

Account

Value

1/31/23

Expenses

Paid

During

Period

8/1/22–1/31/23

1,2

Ending

Account

Value

1/31/23

Expenses

Paid

During

Period

8/1/22–1/31/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,131.70

$5.21

$1,020.32

$4.94

0.97%

C

$1,000

$1,127.60

$9.21

$1,016.54

$8.73

1.72%

R6

$1,000

$1,134.00

$3.01

$1,022.39

$2.85

0.56%

Advisor

$1,000

$1,133.00

$3.87

$1,021.58

$3.67

0.72%

Franklin

Gold

and

Precious

Metals

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

Six

Months

Ended

January

31,

2023

(unaudited)

Year

Ended

July

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.40

$24.23

$28.04

$16.68

$13.56

$16.19

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

0.06

0.13

0.04

(0.04)

(0.02)

(0.06)

Net

realized

and

unrealized

gains

(losses)

2.10

(5.90)

(1.20)

11.40

3.14

(2.51)

Total

from

investment

operations

........

2.16

(5.77)

(1.16)

11.36

3.12

(2.57)

Less

distributions

from:

Net

investment

income

..............

—

(2.06)

(2.65)

—

—

(0.06)

Net

asset

value,

end

of

period

..........

$18.56

$16.40

$24.23

$28.04

$16.68

$13.56

Total

return

c

.......................

13.17%

(25.63)%

(3.80)%

68.05%

23.01%

(15.92)%

Ratios

to

average

net

assets

d

Expenses

e

........................

0.97%

f

0.88%

0.90%

f

0.93%

f

0.98%

f

1.02%

f

Net

investment

income

(loss)

..........

0.76%

0.58%

0.17%

(0.20)%

(0.15)%

(0.37)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$726,579

$656,071

$921,127

$938,555

$645,108

$587,294

Portfolio

turnover

rate

................

4.90%

17.60%

18.91%

17.00%

12.82%

8.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Six

Months

Ended

January

31,

2023

(unaudited)

Year

Ended

July

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.50

$21.71

$25.42

$15.24

$12.49

$14.96

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

—

c

(0.03)

(0.13)

(0.16)

(0.11)

(0.15)

Net

realized

and

unrealized

gains

(losses)

1.85

(5.23)

(1.09)

10.34

2.86

(2.32)

Total

from

investment

operations

........

1.85

(5.26)

(1.22)

10.18

2.75

(2.47)

Less

distributions

from:

Net

investment

income

..............

—

(1.95)

(2.49)

—

—

—

Net

asset

value,

end

of

period

..........

$16.35

$14.50

$21.71

$25.42

$15.24

$12.49

Total

return

d

.......................

12.76%

(26.18)%

(4.53)%

66.80%

22.02%

(16.51)%

Ratios

to

average

net

assets

e

Expenses

f

.........................

1.72%

g

1.63%

1.65%

g

1.68%

g

1.73%

g

1.77%

g

Net

investment

income

(loss)

..........

0.05%

(0.17)%

(0.59)%

(0.94)%

(0.90)%

(1.12)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$59,826

$58,538

$93,615

$106,271

$75,129

$94,997

Portfolio

turnover

rate

................

4.90%

17.60%

18.91%

17.00%

12.82%

8.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

Six

Months

Ended

January

31,

2023

(unaudited)

Year

Ended

July

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.98

$26.32

$30.20

$17.90

$14.50

$17.31

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.10

0.22

0.13

0.03

0.04

0.01

Net

realized

and

unrealized

gains

(losses)

2.31

(6.45)

(1.28)

12.27

3.36

(2.68)

Total

from

investment

operations

........

2.41

(6.23)

(1.15)

12.30

3.40

(2.67)

Less

distributions

from:

Net

investment

income

..............

—

(2.11)

(2.73)

—

—

(0.14)

Net

asset

value,

end

of

period

..........

$20.39

$17.98

$26.32

$30.20

$17.90

$14.50

Total

return

c

.......................

13.40%

(25.36)%

(3.46)%

68.66%

23.45%

(15.50)%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.69%

0.64%

0.69%

0.72%

0.83%

0.79%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.56%

e

0.52%

0.56%

e

0.56%

e

0.58%

e

0.55%

e

Net

investment

income

...............

1.10%

0.94%

0.49%

0.17%

0.25%

0.10%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$39,217

$30,969

$25,458

$20,574

$10,808

$8,153

Portfolio

turnover

rate

................

4.90%

17.60%

18.91%

17.00%

12.82%

8.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

Six

Months

Ended

January

31,

2023

(unaudited)

Year

Ended

July

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.74

$26.00

$29.88

$17.73

$14.38

$17.17

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

0.09

0.20

0.11

0.01

0.01

(0.02)

Net

realized

and

unrealized

gains

(losses)

2.27

(6.36)

(1.28)

12.14

3.34

(2.67)

Total

from

investment

operations

........

2.36

(6.16)

(1.17)

12.15

3.35

(2.69)

Less

distributions

from:

Net

investment

income

..............

—

(2.10)

(2.71)

—

—

(0.10)

Net

asset

value,

end

of

period

..........

$20.10

$17.74

$26.00

$29.88

$17.73

$14.38

Total

return

c

.......................

13.30%

(25.42)%

(3.59)%

68.47%

23.30%

(15.70)%

Ratios

to

average

net

assets

d

Expenses

e

........................

0.72%

f

0.63%

0.65%

f

0.68%

f

0.73%

f

0.77%

f

Net

investment

income

(loss)

..........

1.01%

0.84%

0.41%

0.05%

0.10%

(0.12)%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$269,789

$239,115

$307,110

$280,317

$143,589

$130,812

Portfolio

turnover

rate

................

4.90%

17.60%

18.91%

17.00%

12.82%

8.36%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Gold

and

Precious

Metals

Fund

Schedule

of

Investments

(unaudited),

January

31,

2023

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

a

Country

Shares

a

Value

a

Common

Stocks

99.2%

Copper

0.7%

a,b

Imperial

Metals

Corp.

..................................

Canada

2,065,330

$

3,430,574

a

SolGold

plc,

(CAD

Traded)

..............................

Australia

10,650,000

2,241,263

a

SolGold

plc,

(GBP

Traded)

..............................

Australia

10,650,000

2,127,362

a

Vizsla

Copper

Corp.

...................................

Canada

528,571

119,182

7,918,381

Diversified

Metals

&

Mining

9.8%

a

Aclara

Resources,

Inc.

.................................

United

Kingdom

444,972

148,826

a

Adventus

Mining

Corp.

.................................

Canada

3,350,000

1,309,282

a

Adventus

Mining

Corp.

.................................

Canada

500,000

195,415

a,c

Adventus

Mining

Corp.,

144A

............................

Canada

4,500,000

1,758,738

a

Arizona

Metals

Corp.

...................................

Canada

150,000

472,379

a,c

Arizona

Metals

Corp.,

144A

..............................

Canada

1,244,000

3,917,595

a

Aston

Minerals

Ltd.

....................................

Australia

25,000,000

1,663,484

a

Azimut

Exploration,

Inc.

.................................

Canada

1,950,000

2,051,860

a

Bluestone

Resources,

Inc.

...............................

Canada

550,000

231,492

a,c

Bluestone

Resources,

Inc.,

144A

..........................

Canada

6,800,000

2,862,082

a

Bravo

Mining

Corp.

....................................

Canada

2,880,000

5,498,083

a

Chalice

Mining

Ltd.

....................................

Australia

3,724,965

17,173,645

a,d

Clean

Air

Metals,

Inc.

..................................

Canada

10,315,600

891,615

a,c,d

Euro

Sun

Mining,

Inc.,

144A

.............................

Canada

10,000,000

563,698

a,c

G

Mining

Ventures

Corp.,

144A

...........................

Canada

18,750,000

11,978,580

a

Ivanhoe

Electric,

Inc.

...................................

United

States

306,000

4,054,500

a,c

Ivanhoe

Mines

Ltd.,

144A

...............................

Canada

2,035,000

19,118,752

a,d,e,f

Magna

Mining,

Inc.

....................................

Canada

2,210,000

1,478,969

a

Matador

Mining

Ltd.

...................................

Australia

10,813,044

802,564

a,d

Max

Resource

Corp.

...................................

Canada

6,000,000

1,059,752

a

OreCorp

Ltd.

.........................................

Australia

8,684,200

2,635,982

a

Prime

Mining

Corp.

....................................

Canada

1,300,000

2,051,860

a,b

Prime

Mining

Corp.

....................................

Canada

2,200,000

3,472,379

a,e,f

Prime

Mining

Corp.

....................................

Canada

545,000

802,351

a,b

Sunrise

Energy

Metals

Ltd.

..............................

Australia

1,359,999

1,686,975

a,d

Talisker

Resources

Ltd.

.................................

Canada

26,400,000

2,281,849

a,b

Vizsla

Silver

Corp.

.....................................

Canada

5,550,000

6,715,897

a

Vizsla

Silver

Corp.

.....................................

Canada

3,000,000

3,630,214

a,b

Western

Copper

&

Gold

Corp.

............................

Canada

2,430,000

4,438,106

a

Western

Copper

&

Gold

Corp.

............................

Canada

930,000

1,698,534

106,645,458

Environmental

&

Facilities

Services

0.0%

†

a

Clean

TeQ

Water

Ltd.

..................................

Australia

679,999

204,005

a

Gold

79.4%

Agnico

Eagle

Mines

Ltd.,

(CAD

Traded)

.....................

Canada

405,859

22,920,891

Agnico

Eagle

Mines

Ltd.,

(USD

Traded)

.....................

Canada

15,000

847,200

Alamos

Gold,

Inc.,

(CAD

Traded),

A

........................

Canada

2,373,316

26,185,854

Alamos

Gold,

Inc.,

(USD

Traded),

A

........................

Canada

1,744,500

19,259,280

AngloGold

Ashanti

Ltd.,

ADR

.............................

Australia

1,269,823

26,691,679

a

Artemis

Gold,

Inc.

.....................................

Canada

3,720,000

13,252,762

a,c,d

Ascot

Resources

Ltd.,

144A

.............................

Canada

22,220,000

12,024,352

a,b,c,d

Ascot

Resources

Ltd.,

144A

.............................

Canada

6,500,000

3,517,475

a,b,d

Auteco

Minerals

Ltd.

...................................

Australia

116,057,775

4,683,990

B2Gold

Corp.

........................................

Canada

6,883,694

27,265,740

a,d

Banyan

Gold

Corp.

....................................

Canada

18,417,629

6,506,039

a,d,e,f

Banyan

Gold

Corp.,

144A

...............................

Canada

1,750,000

580,992

Barrick

Gold

Corp.

....................................

Canada

2,942,383

57,523,588

a

Bellevue

Gold

Ltd.

.....................................

Australia

14,944,000

12,680,388

a

Belo

Sun

Mining

Corp.

.................................

Canada

3,500,000

210,447

a,c

Belo

Sun

Mining

Corp.,

144A

.............................

Canada

3,800,000

228,486

Franklin

Gold

and

Precious

Metals

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Gold

(continued)

a

Black

Cat

Syndicate

Ltd.

................................

Australia

11,522,800

$

3,056,409

a

Bonterra

Resources,

Inc.

................................

Canada

3,500,000

881,248

a

Breaker

Resources

NL

.................................

Australia

16,000,000

3,517,916

Centamin

plc

.........................................

Egypt

13,615,200

18,663,859

Centerra

Gold,

Inc.

....................................

Canada

3,200

20,540

c

Centerra

Gold,

Inc.,

144A

...............................

Canada

2,825,900

18,138,434

a,b

Cerrado

Gold,

Inc.

.....................................

Canada

2,800,000

1,978,204

a

De

Grey

Mining

Ltd.

...................................

Australia

5,000,000

5,298,850

Dundee

Precious

Metals,

Inc.

............................

Canada

3,157,415

20,622,275

a

Eldorado

Gold

Corp.

...................................

Turkey

1,658,724

15,882,859

a

Emerald

Resources

NL

.................................

Australia

16,820,000

16,389,636

Endeavour

Mining

plc

..................................

Burkina

Faso

2,442,114

57,542,483

a,d

Falcon

Metals

Ltd.

.....................................

Australia

9,225,414

1,700,185

a,e

Firefinch

Ltd.

.........................................

Australia

18,028,500

763,579

a

First

Mining

Gold

Corp.

.................................

Canada

7,500,000

1,155,581

a

Galiano

Gold,

Inc.

.....................................

Canada

9,264,362

5,640,085

a,e

Gascoyne

Resources

Ltd.

...............................

Australia

3,690,800

355,628

a,b

Genesis

Minerals

Ltd.

..................................

Australia

6,298,509

5,674,386

a,d

Geopacific

Resources

Ltd.

..............................

Australia

38,375,694

760,369

Gold

Fields

Ltd.

.......................................

South

Africa

529,800

6,040,688

a,d

Gold

Mountain

Mining

Corp.

.............................

Canada

2,050,000

192,597

a,d

Gold

Mountain

Mining

Corp.

.............................

Canada

3,900,000

366,403

a,d

HighGold

Mining,

Inc.

..................................

Canada

4,803,000

2,563,044

Hochschild

Mining

plc

..................................

Peru

2,038,520

1,722,106

a

i-80

Gold

Corp.

.......................................

Canada

2,015,000

5,406,652

a,c

i-80

Gold

Corp.,

144A

..................................

Canada

675,000

1,811,161

a,d

Integra

Resources

Corp.,

(CAD

Traded)

....................

Canada

2,260,000

1,528,749

a,d

Integra

Resources

Corp.,

(USD

Traded)

....................

Canada

1,850,000

1,258,187

a

K92

Mining,

Inc.

......................................

Canada

1,300,000

7,523,487

a,d

Liberty

Gold

Corp.

.....................................

Canada

16,329,800

7,854,996

a,c,d

Liberty

Gold

Corp.,

144A

................................

Canada

2,600,000

1,250,658

a

Lion

One

Metals

Ltd.

...................................

Canada

4,312,400

2,949,481

a,c

Lion

One

Metals

Ltd.,

144A

..............................

Canada

4,024,000

2,752,228

a,e,f

Lydian

International

Ltd.

................................

Jersey

6,375,000

—

a,e,f

Lydian

International

Ltd.,

144A

...........................

Jersey

25,250,000

—

a

Marathon

Gold

Corp.

...................................

Canada

10,613,000

8,136,234

a,d

Mawson

Gold

Ltd.

.....................................

Canada

18,100,000

3,468,997

c

Mineros

SA,

144A

.....................................

Colombia

4,115,000

2,474,258

a,d

Monarch

Mining

Corp.

..................................

Canada

6,000,000

360,767

a,d,e,f

Monarch

Mining

Corp.,

144A

.............................

Canada

9,500,000

507,224

a,b

Moneta

Gold,

Inc.

.....................................

Canada

2,000,000

2,390,079

a,d

Newcore

Gold

Ltd.

....................................

Canada

9,200,000

1,866,967

Newcrest

Mining

Ltd.,

(AUD

Traded)

.......................

Australia

2,501,914

39,756,011

Newcrest

Mining

Ltd.,

(CAD

Traded)

.......................

Australia

301,129

4,780,041

Newmont

Corp.

.......................................

United

States

634,614

33,590,119

a,b,d

Nighthawk

Gold

Corp.

..................................

Canada

5,761,000

1,905,178

Northern

Star

Resources

Ltd.

............................

Australia

1,042,254

9,287,693

a,d

O3

Mining,

Inc.

.......................................

Canada

5,100,000

6,018,038

a

OceanaGold

Corp.

....................................

Australia

9,063,488

19,618,824

a

Ora

Banda

Mining

Ltd.

.................................

Australia

26,707,692

1,646,589

a

Orla

Mining

Ltd.

......................................

Canada

4,490,653

19,373,430

a,c

Orla

Mining

Ltd.,

144A

..................................

Canada

2,000,000

8,628,335

a,c

Osisko

Development

Corp.,

144A

.........................

Canada

960,849

5,697,932

a

Osisko

Mining,

Inc.

....................................

Canada

7,600,000

21,363,397

a,d

Pantoro

Ltd.

.........................................

Australia

112,613,794

7,585,142

a,c

Perpetua

Resources

Corp.,

144A

.........................

United

States

403,000

1,441,774

Perseus

Mining

Ltd.

...................................

Australia

28,558,141

43,390,877

a

Predictive

Discovery

Ltd.

................................

Australia

59,751,010

7,824,390

Franklin

Gold

and

Precious

Metals

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Gold

(continued)

a

Probe

Gold,

Inc.

......................................

Canada

705,000

$

858,399

a,c

Probe

Gold,

Inc.,

144A

.................................

Canada

5,200,000

6,331,454

a,c

Pure

Gold

Mining,

Inc.,

144A

.............................

Canada

26,000,000

390,830

a,d

Red

5

Ltd.

...........................................

Australia

187,628,277

28,006,360

a

Resolute

Mining

Ltd.

...................................

Australia

29,033,333

5,650,675

a

Reunion

Gold

Corp.

...................................

Canada

13,000,000

3,761,744

a,d

RTG

Mining,

Inc.

......................................

Australia

1,769,918

73,165

a,c,d

RTG

Mining,

Inc.,

144A

.................................

Australia

2,397,790

99,119

a,d

RTG

Mining,

Inc.,

CDI

..................................

Australia

64,487,582

2,812,005

a,d

Saturn

Metals

Ltd.

.....................................

Australia

10,339,999

1,248,787

a,b

Skeena

Resources

Ltd.

.................................

Canada

2,074,800

12,366,151

a

Skeena

Resources

Ltd.

.................................

Canada

118,750

707,770

a

Southern

Cross

Gold

Ltd.

...............................

Canada

4,200,000

1,926,448

SSR

Mining,

Inc.

......................................

Canada

2,381,555

40,238,524

a

St.

Augustine

Gold

and

Copper

Ltd.,

(CAD

Traded)

............

United

States

5,137,336

270,284

a,c

St.

Augustine

Gold

and

Copper

Ltd.,

(CAD

Traded),

144A

.......

United

States

16,383,333

861,957

a,c

St.

Augustine

Gold

and

Copper

Ltd.,

(USD

Traded),

144A

.......

United

States

10,000,000

526,118

a

St.

Barbara

Ltd.

.......................................

Australia

9,008,021

4,864,567

a

Superior

Gold,

Inc.

....................................

Canada

500,000

99,587

a,c

Superior

Gold,

Inc.,

144A

...............................

Canada

5,350,000

1,065,577

a

Thesis

Gold,

Inc.

......................................

Canada

2,975,000

2,012,401

a,c

Torex

Gold

Resources,

Inc.,

144A

.........................

Canada

1,430,000

19,657,798

a

Troilus

Gold

Corp.

.....................................

Canada

8,900,000

4,816,234

a

Tulla

Resources

plc,

CDI

................................

Australia

15,300,000

4,017,777

a

Victoria

Gold

Corp.

....................................

Canada

1,210,000

9,539,947

a

West

African

Resources

Ltd.

.............................

Australia

12,264,984

9,719,920

a

Westhaven

Gold

Corp.

.................................

Canada

1,800,000

500,564

a,d,e

Wiluna

Mining

Corp.

Ltd.

................................

Australia

19,510,000

282,328

869,460,912

Precious

Metals

&

Minerals

6.4%

Anglo

American

Platinum

Ltd.

............................

South

Africa

88,556

6,588,281

a

Aurion

Resources

Ltd.

..................................

Canada

4,500,000

2,096,956

a,d

Benchmark

Metals,

Inc.

.................................

Canada

9,790,300

3,090,512

a,d

Benchmark

Metals,

Inc.

.................................

Canada

3,500,000

1,104,848

a

Eastern

Platinum

Ltd.

..................................

Canada

1,752,490

197,575

Impala

Platinum

Holdings

Ltd.

............................

South

Africa

1,470,000

17,051,758

b

Impala

Platinum

Holdings

Ltd.,

ADR

.......................

South

Africa

1,206,100

13,966,638

a,d

Millennial

Precious

Metals

Corp.

..........................

Canada

10,168,700

1,528,553

a

Northam

Platinum

Holdings

Ltd.

..........................

South

Africa

1,019,019

9,998,619

a,b,d

Platinum

Group

Metals

Ltd.,

(CAD

Traded)

..................

South

Africa

2,042,787

3,331,716

a,d

Platinum

Group

Metals

Ltd.,

(CAD

Traded)

..................

South

Africa

1,779,911

2,902,974

a,c,d

Platinum

Group

Metals

Ltd.,

(CAD

Traded),

144A

.............

South

Africa

97,760

159,443

a,b,d

Platinum

Group

Metals

Ltd.,

(USD

Traded)

..................

South

Africa

3,441,856

5,610,225

a,c,d

Platinum

Group

Metals

Ltd.,

(USD

Traded),

144A

.............

South

Africa

36,628

59,739

a

Sable

Resources

Ltd.

..................................

Canada

12,000,000

766,629

a,d

TDG

Gold

Corp.

......................................

Canada

2,080,000

539,346

a,c,d

TDG

Gold

Corp.,

144A

.................................

Canada

4,750,000

1,231,680

70,225,492

Silver

2.9%

a

Aya

Gold

&

Silver,

Inc.

..................................

Canada

690,000

4,195,491

a

Gatos

Silver,

Inc.

......................................

United

States

447,157

2,307,330

a

GoGold

Resources,

Inc.

................................

Canada

9,262,858

15,525,121

Pan

American

Silver

Corp.

..............................

Canada

123,021

2,242,209

a,d

Silver

Mountain

Resources,

Inc.

..........................

Canada

7,300,000

1,892,897

Franklin

Gold

and

Precious

Metals

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Silver

(continued)

a,c,d

Silver

Tiger

Metals,

Inc.,

144A

............................

Canada

17,500,000

$

5,787,298

31,950,346

Total

Common

Stocks

(Cost

$964,036,225)

.....................................

1,086,404,594

Rights

a

a

Rights

0.1%

Gold

0.0%

†

a,e

Kinross

Gold

Corp.,

CVR

,

2/24/32

.........................

Canada

660,000

49,605

Silver

0.1%

a

Pan

American

Silver

Corp.,

CVR

,

2/22/29

...................

Canada

1,850,600

1,165,878

Total

Rights

(Cost

$856,772)

..................................................

1,215,483

Warrants

a

a

a

Warrants

0.3%

Diversified

Metals

&

Mining

0.1%

a,e,f

Adventus

Mining

Corp.,

144A,

7/26/23

......................

Canada

1,000,000

5,218

a,d,e,f

Clean

Air

Metals,

Inc.,

144A,

2/23/23

.......................

Canada

1,379,500

—

a,d,e,f

Clean

Air

Metals,

Inc.,

144A,

2/23/24

.......................

Canada

3,600,000

10,139

a,d,e,f

Euro

Sun

Mining,

Inc.,

144A,

6/05/23

.......................

Canada

5,000,000

537

a,e,f

G

Mining

Ventures

Corp.,

144A,

8/20/24

....................

Canada

3,750,000

210,541

a,d,e,f

Max

Resource

Corp.,

144A,

10/05/23

......................

Canada

6,000,000

36

a,e,f

Prime

Mining

Corp.,

144A,

4/27/24

........................

Canada

650,000

48,818

a,e,f

Prime

Mining

Corp.,

144A,

12/22/25

.......................

Canada

545,000

292,868

a,d,e,f

Talisker

Resources

Ltd.,

144A,

1/11/25

.....................

Canada

4,500,000

91,691

a,e,f

Vizsla

Silver

Corp.,

144A,

11/15/24

........................

Canada

1,500,000

365,401

1,025,249

Gold

0.2%

a,d,e,f

Ascot

Resources

Ltd.,

144A,

3/08/24

.......................

Canada

1,650,000

122,269

a,d,e,f

Gold

Mountain

Mining

Corp.,

144A,

4/21/24

..................

Canada

1,025,000

26

a,e

Marathon

Gold

Corp.,

9/19/24

............................

Canada

3,225,000

492,093

a,d,e,f

Monarch

Mining

Corp.,

144A,

4/06/27

......................

Canada

6,000,000

52,356

a,c,d,e

Nighthawk

Gold

Corp.,

144A,

6/08/23

......................

Canada

1,630,500

130

a,d

Nighthawk

Gold

Corp.,

5/03/24

...........................

Canada

1,250,000

65,765

a

Osisko

Development

Corp.,

12/01/23

......................

Canada

737,500

138,576

a,e,f

Osisko

Development

Corp.,

144A,

3/27/27

..................

Canada

608,333

370,264

a,e,f

Probe

Gold,

Inc.,

144A,

3/08/24

...........................

Canada

900,000

85,388

a,e,f

Reunion

Gold

Corp.,

144A,

7/08/24

........................

Canada

6,500,000

421,125

a

Troilus

Gold

Corp.,

6/30/23

..............................

Canada

1,000,000

41,338

a

Westhaven

Gold

Corp.,

3/03/23

...........................

Canada

2,100,000

23,675

a,d,e

Wiluna

Mining

Corp.

Ltd.,

12/31/24

........................

Australia

9,755,000

—

1,813,005

Precious

Metals

&

Minerals

0.0%

†

a,d,e,f

Benchmark

Metals,

Inc.,

144A,

12/09/23

....................

Canada

750,000

5,284

a,d,e,f

Benchmark

Metals,

Inc.,

9/29/24

..........................

Canada

1,000,000

72,190

a,d,e,f

Millennial

Precious

Metals

Corp.,

5/18/24

...................

Canada

2,650,000

38,807

116,281

Silver

0.0%

†

a,c,d

Silver

Mountain

Resources,

Inc.,

144A,

1/31/24

...............

Canada

3,650,000

96,017

Total

Warrants

(Cost

$–)

......................................................

3,050,552

Total

Long

Term

Investments

(Cost

$964,892,997)

...............................

1,090,670,629

a

Franklin

Gold

and

Precious

Metals

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

Short

Term

Investments

0.9%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

0.7%

g,h

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.969%

....

United

States

7,513,014

$

7,513,014

Total

Money

Market

Funds

(Cost

$7,513,014)

...................................

7,513,014

i

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.2%

Money

Market

Funds

0.2%

g,h

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.969%

....

United

States

1,852,000

1,852,000

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$1,852,000)

.................................................................

1,852,000

Total

Short

Term

Investments

(Cost

$9,365,014

)

.................................

9,365,014

a

Total

Investments

(Cost

$974,258,011)

100.5%

..................................

$1,100,035,643

Other

Assets,

less

Liabilities

(0.5)%

...........................................

(4,624,164)

Net

Assets

100.0%

...........................................................

$1,095,411,479

See

Abbreviations

on

page

37

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

January

31,

2023.

See

Note

1(c).

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

January

31,

2023,

the

aggregate

value

of

these

securities

was

$134,431,698,

representing

12.3%

of

net

assets.

d

See

Note

11

regarding

holdings

of

5%

voting

securities.

e

Fair

valued

using

significant

unobservable

inputs.

See

Note

13

regarding

fair

value

measurements.

f

See

Note

10

regarding

restricted

securities.

g

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

h

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

i

See

Note

1(c)

regarding

securities

on

loan.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

January

31,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

Franklin

Gold

and

Precious

Metals

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$699,769,513

Cost

-

Non-controlled

affiliates

(Note

3

f

and

11

)

...................................................

274,488,498

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$1,612,229)

.................................

$957,578,155

Value

-

Non-controlled

affiliates

(Note

3

f

and

11

)

..................................................

142,457,488

Cash

....................................................................................

67,574

Foreign

currency,

at

value

(cost

$12,144)

.........................................................

12,192

Receivables:

Investment

securities

sold

...................................................................

684,159

Capital

shares

sold

........................................................................

2,789,324

Dividends

and

interest

.....................................................................

164,411

Total

assets

..........................................................................

1,103,753,303

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

15,881

Capital

shares

redeemed

...................................................................

5,156,553

Management

fees

.........................................................................

432,657

Distribution

fees

..........................................................................

204,458

Transfer

agent

fees

........................................................................

413,537

Trustees'

fees

and

expenses

.................................................................

1,648

Payable

upon

return

of

securities

loaned

(Note

1

c

)

..................................................

1,852,000

Accrued

expenses

and

other

liabilities

...........................................................

265,090

Total

liabilities

.........................................................................

8,341,824

Net

assets,

at

value

.................................................................

$1,095,411,479

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$1,814,029,062

Total

distributable

earnings

(losses)

.............................................................

(718,617,583)

Net

assets,

at

value

.................................................................

$1,095,411,479

Franklin

Gold

and

Precious

Metals

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

January

31,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

Franklin

Gold

and

Precious

Metals

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$726,579,227

Shares

outstanding

........................................................................

39,145,783

Net

asset

value

per

share

a

..................................................................

$18.56

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$19.64

Class

C:

Net

assets,

at

value

.......................................................................

$59,825,858

Shares

outstanding

........................................................................

3,659,412

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$16.35

Class

R6:

Net

assets,

at

value

.......................................................................

$39,217,017

Shares

outstanding

........................................................................

1,923,117

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$20.39

Advisor

Class:

Net

assets,

at

value

.......................................................................

$269,789,377

Shares

outstanding

........................................................................

13,421,032

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$20.10

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Gold

and

Precious

Metals

Fund

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

January

31,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

Franklin

Gold

and

Precious

Metals

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$864,344)

Unaffiliated

issuers

........................................................................

$8,062,430

Non-controlled

affiliates

(Note

3

f

and

11

)

........................................................

69,258

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

110,705

Non-controlled

affiliates

(Note

3

f

)

.............................................................

41,756

Total

investment

income

...................................................................

8,284,149

Expenses:

Management

fees

(Note

3

a

)

...................................................................

2,259,577

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

797,058

    Class

C

................................................................................

269,968

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

614,058

    Class

C

................................................................................

51,853

    Class

R6

...............................................................................

25,653

    Advisor

Class

............................................................................

225,856

Custodian

fees

(Note

4

)

......................................................................

39,032

Reports

to

shareholders

fees

..................................................................

15,390

Registration

and

filing

fees

....................................................................

64,229

Professional

fees

...........................................................................

32,304

Trustees'

fees

and

expenses

..................................................................

7,246

Interest

expense

...........................................................................

802

Other

....................................................................................

119,842

Total

expenses

.........................................................................

4,522,868

Expense

reductions

(Note

4

)

...............................................................

(3)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(37,371)

Net

expenses

.........................................................................

4,485,494

Net

investment

income

................................................................

3,798,655

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

1,506,882

Non-controlled

affiliates

(Note

3

f

and

11

)

......................................................

(8,313,788)

Foreign

currency

transactions

................................................................

(104,252)

Net

realized

gain

(loss)

..................................................................

(6,911,158)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

135,419,352

Non-controlled

affiliates

(Note

3

f

and

11

)

......................................................

(5,201,272)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(3,542)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

130,214,538

Net

realized

and

unrealized

gain

(loss)

............................................................

123,303,380

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$127,102,035

Franklin

Gold

and

Precious

Metals

Fund

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

Franklin

Gold

and

Precious

Metals

Fund

Six

Months

Ended

January

31,

2023

(unaudited)

Year

Ended

July

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$3,798,655

$7,681,514

Net

realized

gain

(loss)

.................................................

(6,911,158)

67,809,415

Net

change

in

unrealized

appreciation

(depreciation)

...........................

130,214,538

(415,884,719)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

127,102,035

(340,393,790)

Distributions

to

shareholders:

Class

A

.............................................................

—

(77,236,319)

Class

C

.............................................................

—

(7,493,602)

Class

R6

............................................................

—

(2,559,248)

Advisor

Class

........................................................

—

(24,898,226)

Total

distributions

to

shareholders

..........................................

—

(112,187,395)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(14,493,484)

35,249,661

Class

C

.............................................................

(5,190,319)

(5,397,875)

Class

R6

............................................................

3,467,532

18,645,815

Advisor

Class

........................................................

(167,873)

41,467,076

Total

capital

share

transactions

............................................

(16,384,144)

89,964,677

Net

increase

(decrease)

in

net

assets

...................................

110,717,891

(362,616,508)

Net

assets:

Beginning

of

period

.....................................................

984,693,588

1,347,310,096

End

of

period

..........................................................

$1,095,411,479

$984,693,588

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

24

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Gold

and

Precious

Metals

Fund (Fund)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company.

The

Fund

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

Fund

offers

four

classes

of

shares:

Class

A,

Class

C,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

The

following

summarizes

the

Fund’s

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Fund’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in open-end mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Fund's

business

day.

Events

can

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

25

franklintempleton.com

Semiannual

Report

occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund's

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund's

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

January

31,

2023,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund's

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund's

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund.

Additionally,

at

January

31,

2023,

the

Fund

held

$26,234

in

U.S.

Government

and

Agency

securities

as

collateral.

These

securities

are

held

as

collateral

in

segregated

accounts

with

the

Fund’s

custodian.

The

Fund

cannot

repledge

or

resell

these

securities

held

as

collateral.

As

such,

the

non-cash

collateral

is

excluded

from

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

26

franklintempleton.com

Semiannual

Report

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

d.

Income

and

Deferred

Taxes

It

is the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

January

31,

2023,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Fund's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Fund

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

Additionally,

in

the

normal

course

of

business,

the

Fund

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Fund's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund

that

have

not

yet

occurred.

Currently,

the

Fund

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Securities

Lending

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

27

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

January

31,

2023,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

January

31,

2023

Year

Ended

July

31,

2022

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

4,873,463

$77,969,271

17,394,815

$384,022,653

Shares

issued

in

reinvestment

of

distributions

..........

—

—

3,065,533

63,947,021

Shares

redeemed

...............................

(5,728,379)

(92,462,755)

(18,480,802)

(412,720,013)

Net

increase

(decrease)

..........................

(854,916)

$(14,493,484)

1,979,546

$35,249,661

Class

C

Shares:

Shares

sold

...................................

283,284

$4,058,638

1,043,050

$20,570,770

Shares

issued

in

reinvestment

of

distributions

..........

—

—

401,227

7,434,732

Shares

redeemed

a

..............................

(660,679)

(9,248,957)

(1,720,032)

(33,403,377)

Net

increase

(decrease)

..........................

(377,395)

$(5,190,319)

(275,755)

$(5,397,875)

Class

R6

Shares:

Shares

sold

...................................

632,079

$11,048,221

1,456,609

$34,997,925

Shares

issued

in

reinvestment

of

distributions

..........

—

—

111,170

2,536,911

Shares

redeemed

...............................

(431,209)

(7,580,689)

(812,733)

(18,889,021)

Net

increase

(decrease)

..........................

200,870

$3,467,532

755,046

$18,645,815

Advisor

Class

Shares:

Shares

sold

...................................

3,376,020

$58,121,628

5,907,074

$139,056,195

Shares

issued

in

reinvestment

of

distributions

..........

—

—

999,907

22,527,905

Shares

redeemed

...............................

(3,433,523)

(58,289,501)

(5,238,312)

(120,117,024)

Net

increase

(decrease)

..........................

(57,503)

$(167,873)

1,668,669

$41,467,076

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

28

franklintempleton.com

Semiannual

Report

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

month-end

net

assets

of

the

Fund

as

follows:

For

the

period

ended

January

31,

2023,

the

annualized

gross

effective

investment

management

fee

rate

was 0.472%

of

the

Fund’s

average daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

A

and

Class

C

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

period:

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

In

excess

of

$15

billion

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

1.00%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$23,824

CDSC

retained

..............................................................................

$7,382

3.

Transactions

with

Affiliates

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

29

franklintempleton.com

Semiannual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

January

31,

2023,

the

Fund

paid

transfer

agent

fees

of

$917,420,

of

which

$278,548

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

January

31,

2023,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

g.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0

.

03

%

based

on

the

average

net

assets

of

the

class

until

November

30,

202

3

.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

January

31,

2023,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Gold

and

Precious

Metals

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.969%

$

4,427,844

$

67,837,567

$

(64,752,397)

$

—

$

—

$

7,513,014

7,513,014

$

69,258

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

3.969%

$3,062,000

$15,705,000

$(16,915,000)

$—

$—

$1,852,000

1,852,000

$41,756

Total

Affiliated

Securities

...

$7,489,844

$83,542,567

$(81,667,397)

$—

$—

$9,365,014

$111,014

3.

Transactions

with

Affiliates

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

30

franklintempleton.com

Semiannual

Report

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

July

31,

2022,

the

capital

loss

carryforwards

were

as

follows:

For

tax

purposes,

the

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

July

31,

2022,

the

Fund

deferred

late-year

ordinary

losses

of

$26,583,136.

At

J

anuary

31,

202

3

,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales,

passive

foreign

investment

company

shares

and

corporate

actions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities) for

the

period

ended

January

31,

2023,

aggregated

$46,161,235

and

$55,428,649,

respectively. 

At

January

31,

2023,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$1,852,000

of

cash

collateral.

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

7.

Concentration

of

Risk

Investing

in

foreign

securities

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities,

such

as

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

Political

and

financial

uncertainty

in

many

foreign

regions

may

increase

market

volatility

and

the

economic

risk

of

investing

in

foreign

securities.

In

addition,

certain

foreign

securities

may

not

be

as

liquid

as

U.S.

securities.

8.

Geopolitical

Risk

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$8,067,044

Long

term

................................................................................

668,367,820

Total

capital

loss

carryforwards

...............................................................

$676,434,864

Cost

of

investments

..........................................................................

$1,112,517,130

Unrealized

appreciation

........................................................................

$412,728,556

Unrealized

depreciation

........................................................................

(425,210,043)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(12,481,487)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

31

franklintempleton.com

Semiannual

Report

9.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

10.

Restricted

Securities

The

Fund

invests

in

securities

that

are

restricted

under

the

Securities

Act

of

1933

(1933

Act).

Restricted

securities

are

often

purchased

in

private

placement

transactions,

and

cannot

be

sold

without

prior

registration

unless

the

sale

is

pursuant

to

an

exemption

under

the

1933

Act.

Disposal

of

these

securities

may

require

greater

effort

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

The Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

January

31,

2023,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Shares

/

Warrants

Issuer

Acquisition

Date

Cost

Value

Franklin

Gold

a

nd

Precious

Metals

Fund

1,000,000

a

Adventus

Mining

Corp.,

144A,

7/26/23

............

1/27/22

$

—

$

5,218

1,650,000

b

Ascot

Resources

Ltd.,

144A,

3/08/24

.............

3/09/22

—

122,269

1,750,000

c

Banyan

Gold

Corp.,

144A

......................

12/19/22

512,595

580,992

750,000

d

Benchmark

Metals,

Inc.,

144A,

12/09/23

...........

12/10/21

—

5,284

1,000,000

d

Benchmark

Metals,

Inc.,

9/29/24

................

9/30/22

—

72,190

1,379,500

e

Clean

Air

Metals,

Inc.,

144A,

2/23/23

.............

2/24/21

—

—

3,600,000

e

Clean

Air

Metals,

Inc.,

144A,

2/23/24

.............

2/24/22

—

10,139

5,000,000

f

Euro

Sun

Mining,

Inc.,

144A,

6/05/23

.............

6/09/20

—

537

3,750,000

g

G

Mining

Ventures

Corp.,

144A,

8/20/24

...........

9/16/21

—

210,541

1,025,000

h

Gold

Mountain

Mining

Corp.,

144A,

4/21/24

........

4/22/22

—

26

6,375,000

Lydian

International

Ltd.

.......................

11/24/17

2,098,016

—

25,250,000

Lydian

International

Ltd.,

144A

..................

3/06/12

–

3/10/16

14,750,154

—

2,210,000

Magna

Mining,

Inc.

...........................

1/23/23

1,817,706

1,478,969

6,000,000

i

Max

Resource

Corp.,

144A,

10/05/23

.............

5/20/22

—

36

2,650,000

j

Millennial

Precious

Metals

Corp.,

5/18/24

..........

6/17/22

—

38,807

9,500,000

k

Monarch

Mining

Corp.,

144A

...................

1/18/23

457,407

507,224

6,000,000

k

Monarch

Mining

Corp.,

144A,

4/06/27

.............

4/07/22

—

52,356

608,333

l

Osisko

Development

Corp.,

144A,

3/27/27

.........

3/03/22

—

370,264

545,000

m

Prime

Mining

Corp.

..........................

12/15/22

598,551

802,351

545,000

m

Prime

Mining

Corp.,

144A,

12/22/25

..............

12/23/22

—

292,868

650,000

m

Prime

Mining

Corp.,

144A,

4/27/24

...............

4/28/21

—

48,818

900,000

n

Probe

Gold,

Inc.,

144A,

3/08/24

.................

3/09/22

—

85,388

6,500,000

o

Reunion

Gold

Corp.,

144A,

7/08/24

..............

7/11/22

—

421,125

4,500,000

p

Talisker

Resources

Ltd.,

144A,

1/11/25

............

8/12/22

—

91,691

1,500,000

q

Vizsla

Silver

Corp.,

144A,

11/15/24

...............

11/16/22

—

365,401

Total

Restricted

Securities

(Value

is

0.5%

of

Net

Assets)

..............

$20,234,429

$5,562,494

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

32

franklintempleton.com

Semiannual

Report

11.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

period

ended

January

31,

2023,

investments

in

“affiliated

companies”

were

as

follows:

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$3,263,435

as

of

January

31,

2023.

b

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$15,541,827

as

of

January

31,

2023.

c

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$6,506,039

as

of

January

31,

2023.

d

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$4,195,360

as

of

January

31,

2023.

e

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$891,615

as

of

January

31,

2023.

f

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$563,698

as

of

January

31,

2023.

g

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$11,978,580

as

of

January

31,

2023.

h

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$559,000

as

of

January

31,

2023.

i

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$1,059,752

as

of

January

31,

2023.

j

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$1,528,553

as

of

January

31,

2023.

k

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$360,767

as

of

January

31,

2023.

l

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$5,836,508

as

of

January

31,

2023.

m

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$5,524,239

as

of

January

31,

2023.

n

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$7,189,853

as

of

January

31,

2023.

o

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$3,761,744

as

of

January

31,

2023.

p

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$2,281,849

as

of

January

31,

2023.

q

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$10,346,111

as

of

January

31,

2023.

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Warrants

at

End

of

Period

Investment

Income

Franklin

Gold

a

nd

Precious

Metals

Fund

Non-Controlled

Affiliates

Dividends

Ascot

Resources

Ltd.,

144A

...........

$

6,593,987

$

—

$

—

$

—

$

5,430,365

$

12,024,352

22,220,000

$

—

Ascot

Resources

Ltd.,

144A,

3/08/24

.....

90,648

—

—

—

31,621

122,269

1,650,000

—

Ascot

Resources

Ltd.,

144A.

...........

1,928,934

—

—

—

1,588,541

3,517,475

6,500,000

—

Auteco

Minerals

Ltd

...

3,204,442

633,829

—

—

845,719

4,683,990

116,057,775

—

Banyan

Gold

Corp.

...

6,878,581

—

—

—

(372,542)

6,506,039

18,417,629

—

Banyan

Gold

Corp.,

144A

—

512,595

—

—

68,397

580,992

1,750,000

—

Benchmark

Metals,

Inc.

..

702,851

611,621

a

—

—

(209,624)

1,104,848

3,500,000

—

Benchmark

Metals,

Inc.

...

4,587,411

—

—

—

(1,496,899)

3,090,512

9,790,300

—

Benchmark

Metals,

Inc.,

144A,

12/09/23

....

30,232

—

—

—

(24,948)

5,284

750,000

—

Benchmark

Metals,

Inc.,

9/29/24

..........

—

—

a

—

—

72,190

72,190

1,000,000

—

Black

Cat

Syndicate

Ltd.

3,048,844

—

—

—

—

b

—

b

—

b

—

Clean

Air

Metals,

Inc.

..

1,450,065

—

—

—

(558,450)

891,615

10,315,600

—

10.

Restricted

Securities

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

33

franklintempleton.com

Semiannual

Report

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Warrants

at

End

of

Period

Investment

Income

Franklin

Gold

and

Precious

Metals

Fund

(continued)

Non-Controlled

Affiliates

Clean

Air

Metals,

Inc.,

144A,

2/23/23

.....

$

878

$

—

$

—

$

—

$

(878)

$

—

1,379,500

$

—

Clean

Air

Metals,

Inc.,

144A,

2/23/24

.....

87,884

—

—

—

(77,745)

10,139

3,600,000

—

Euro

Sun

Mining,

Inc.,

144A

...........

859,039

—

—

—

(295,341)

563,698

10,000,000

—

Euro

Sun

Mining,

Inc.,

144A,

6/05/23

.....

11,761

—

—

—

(11,224)

537

5,000,000

—

Falcon

Metals

Ltd.

....

1,460,861

—

—

—

239,324

1,700,185

9,225,414

—

G

Mining

Ventures

Corp.,

144A

...........

—

10,711,519

a

—

—

—

b

—

b

—

b

—

G

Mining

Ventures

Corp.,

144A,

8/20/24

.....

526,066

—

—

—

—

b

—

b

—

b

—

Geopacific

Resources

Ltd.

1,902,429

—

—

—

(1,142,060)

760,369

38,375,694

—

Gold

Mountain

Mining

Corp

.

...........

1,172,589

—

—

—

(806,186)

366,403

3,900,000

—

Gold

Mountain

Mining

Corp.

...........

616,361

—

—

—

(423,764)

192,597

2,050,000

—

Gold

Mountain

Mining

Corp.,

144A,

4/21/24

.

41,792

—

—

—

(41,766)

26

1,025,000

—

HighGold

Mining,

Inc.

..

3,338,282

—

—

—

(775,238)

2,563,044

4,803,000

—

Integra

Resources

Corp.,

(CAD

Traded)

.....

1,535,494

—

—

—

(6,745)

1,528,749

2,260,000

—

Integra

Resources

Corp.,

(USD

Traded)

.....

1,258,185

—

—

—

2

1,258,187

1,850,000

—

Liberty

Gold

Corp

....

6,185,047

—

—

—

1,669,949

7,854,996

16,329,800

—

Liberty

Gold

Corp.,

144A

984,772

—

—

—

265,886

1,250,658

2,600,000

—

Lion

One

Metals

Ltd.

..

4,647,491

—

—

—

—

b

—

b

—

b

—

Lion

One

Metals

Ltd.,

144A

...........

4,336,680

—

—

—

—

b

—

b

—

b

—

Magna

Mining,

Inc.

....

—

1,817,706

—

—

(338,737)

1,478,969

2,210,000

—

Mawson

Gold

Ltd

.....

1,554,861

—

a

—

—

1,914,136

3,468,997

18,100,000

—

Max

Resource

Corp

...

—

2,785,838

a

—

—

(1,726,086)

1,059,752

6,000,000

—

Max

Resource

Corp.,

144A,

10/05/23

....

403,169

—

—

—

(403,133)

36

6,000,000

—

Millennial

Precious

Metals

Corp

............

2,223,535

—

—

—

(694,982)

1,528,553

10,168,700

—

Millennial

Precious

Metals

Corp.,

5/18/24

.....

162,133

—

—

—

(123,326)

38,807

2,650,000

—

Monarch

Mining

Corp

..

2,188,325

—

a

—

—

(1,827,558)

360,767

6,000,000

—

Monarch

Mining

Corp.,

144A

...........

—

457,407

a

—

—

49,817

507,224

9,500,000

—

11.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

34

franklintempleton.com

Semiannual

Report

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Warrants

at

End

of

Period

Investment

Income

Franklin

Gold

and

Precious

Metals

Fund

(continued)

Non-Controlled

Affiliates

Monarch

Mining

Corp.,

144A,

4/06/27

.....

$

697,256

$

—

$

—

$

—

$

(644,900)

$

52,356

6,000,000

$

—

Newcore

Gold

Ltd.

....

2,155,408

—

—

—

(288,441)

1,866,967

9,200,000

—

Nighthawk

Gold

Corp

..

1,889,590

—

—

—

15,588

1,905,178

5,761,000

—

Nighthawk

Gold

Corp.,

144A,

6/08/23

.....

3,299

—

—

—

(3,169)

130

1,630,500

—

Nighthawk

Gold

Corp.,

5/03/24

..........

63,452

—

—

—

2,313

65,765

1,250,000

—

O3

Mining,

Inc.

......

5,801,250

1,177,037

a

—

—

(960,249)

6,018,038

5,100,000

—

Pantoro

Ltd

.........

9,269,140

3,997,917

a

—

—

(5,681,915)

7,585,142

112,613,794

—

Platinum

Group

Metals

Ltd.,

(CAD

Traded)

..

.

3,270,374

—

—

—

61,342

3,331,716

2,042,787

—

Platinum

Group

Metals

Ltd.,

(CAD

Traded)

...

2,849,525

—

—

—

53,449

2,902,974

1,779,911

—

Platinum

Group

Metals

Ltd.,

(CAD

Traded),

144A

...........

156,508

—

—

—

2,935

159,443

97,760

—

Platinum

Group

Metals

Ltd.,

(USD

Traded)

..

6,507,388

—

(1,007,322)

(8,313,788)

8,423,947

5,610,225

3,441,856

—

Platinum

Group

Metals

Ltd.,

(USD

Traded),

144A

...........

58,639

—

—

—

1,100

59,739

36,628

—

Red

5

Ltd.

.........

32,018,514

1,560,720

a

—

—

(5,572,874)

28,006,360

187,628,277

—

RTG

Mining,

Inc.

.....

89,844

—

—

—

(16,679)

73,165

1,769,918

—

RTG

Mining,

Inc.,

144A

.

121,715

—

—

—

(22,596)

99,119

2,397,790

—

RTG

Mining,

Inc.,

CDI

..

3,063,908

—

—

—

(251,903)

2,812,005

64,487,582

—

Sable

Resources

Ltd.

..

2,202,265

—

—

—

—

b

—

b

—

b

—

Saturn

Metals

Ltd.

....

1,658,655

311,050

—

—

(720,918)

1,248,787

10,339,999

—

Silver

Mountain

Resources,

Inc.

....

1,282,702

—

—

—

610,195

1,892,897

7,300,000

—

Silver

Mountain

Resources,

Inc.,

144A,

1/31/24

..........

178,153

—

—

—

(82,136)

96,017

3,650,000

—

Silver

Tiger

Metals,

Inc.,

144A

...........

4,099,961

—

—

—

1,687,337

5,787,298

17,500,000

—

Talisker

Resources

Ltd.

.

2,479,891

563,513

—

—

(761,555)

2,281,849

26,400,000

—

Talisker

Resources

Ltd.,

144A,

1/11/25

.....

—

—

a

—

—

91,691

91,691

4,500,000

—

TDG

Gold

Corp.

.....

259,898

—

—

—

279,448

539,346

2,080,000

—

TDG

Gold

Corp.,

144A

.

585,027

—

—

—

646,653

1,231,680

4,750,000

—

Thesis

Gold,

Inc.

.....

3,229,403

—

—

—

—

b

—

b

—

b

—

Troilus

Gold

Corp.

....

3,405,701

—

—

—

—

b

—

b

—

b

—

Troilus

Gold

Corp.,

6/30/23

29,285

—

—

—

—

b

—

b

—

b

—

11.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

35

franklintempleton.com

Semiannual

Report

12.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

3,

2023,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

2,

2024,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the Statement

of

Operations.

During

the

period

ended

January

31,

2023,

the Fund

did

not

use

the

Global

Credit

Facility.

13.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund’s

financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund’s

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Warrants

at

End

of

Period

Investment

Income

Franklin

Gold

and

Precious

Metals

Fund

(continued)

Non-Controlled

Affiliates

Wiluna

Mining

Corp.

Ltd.

$

2,898,345

$

—

$

—

$

—

$

(2,616,017)

$

282,328

19,510,000

$

—

Wiluna

Mining

Corp.

Ltd.,

12/31/24

.........

272,633

—

—

—

(272,633)

—

9,755,000

—

Total

Affiliated

Securities

(Value

is

12.1%

of

Net

Assets)

..........

$154,611,358

$25,140,752

$(1,007,322)

$

(8,313,788)

$

(5,201,272)

$133,092,474

$—

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

b

As

of

January

31,

2023,

no

longer

an

affiliate.

11.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

36

franklintempleton.com

Semiannual

Report

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

January

31,

2023,

in

valuing

the

Fund’s

assets

carried

at

fair

value,

is

as

follows:

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the

period

.

At

J

anuary

31,

202

3

,

the

reconciliation

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Gold

and

Precious

Metals

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Copper

..............................

$

5,791,019

$

2,127,362

$

—

$

7,918,381

Diversified

Metals

&

Mining

...............

69,845,863

34,518,275

2,281,320

106,645,458

Environmental

&

Facilities

Services

.........

204,005

—

—

204,005

Gold

................................

617,580,463

249,390,698

2,489,751

a

869,460,912

Precious

Metals

&

Minerals

...............

44,248,925

25,976,567

—

70,225,492

Silver

...............................

30,057,449

1,892,897

—

31,950,346

Rights

:

Gold

................................

—

—

49,605

49,605

Silver

...............................

1,165,878

—

—

1,165,878

Warrants

:

Diversified

Metals

&

Mining

...............

—

—

1,025,249

a

1,025,249

Gold

................................

269,354

—

1,543,651

a

1,813,005

Precious

Metals

&

Minerals

...............

—

—

116,281

116,281

Silver

...............................

96,017

—

—

96,017

Short

Term

Investments

...................

9,365,014

—

—

9,365,014

Total

Investments

in

Securities

...........

$778,623,987

$313,905,799

b

$7,505,857

$1,100,035,643

a

Includes

financial

instruments

determined

to

have

no

value

at

January

31,

2023.

b

Includes

foreign

securities

valued

at

$292,972,084,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

c

Transfer

Out

of

Level

3

d

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a          

a

a

a

a

a

a

a

a

a

Franklin

Gold

and

Precious

Metals

Fund

Assets:

Investments

in

Securities:

Common

Stocks

Diversified

Metals

&

Mining

.........

$

1,567,117

$

2,416,257

$

(2,785,839)

$

—

$

—

$

—

$

—

$

1,083,785

$

2,281,320

$

(134,936)

Gold

............

10,603,419

e

970,003

(10,475,472)

3,983,506

—

—

(305,471)

(2,286,234)

2,489,751

e

(4,032,040)

Precious

Metals

&

Minerals

........

585,027

—

—

—

(585,027)

—

—

—

—

—

Rights

Gold

............

51,542

—

—

—

—

—

—

(1,937)

49,605

(1,937)

Warrants

Diversified

Metals

&

Mining

.........

1,277,893

—

e

—

—

—

—

—

(252,644)

1,025,249

e

(252,644)

Gold

............

1,887,657

e

—

e

—

e

314,425

—

—

—

(658,431)

1,543,651

e

(581,390)

13.

Fair

Value

Measurements

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Notes

to

Financial

Statements

(unaudited)

37

franklintempleton.com

Semiannual

Report

14.

New

Accounting

Pronouncements

In June

2022,

the

FASB

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

has

reviewed

the

requirements

and

believes

that

the

adoption

of

the

ASU

will

not

have

a

material

impact

on

the

financial

statements.

15.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

c

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(Depreciation)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a          

a

a

a

a

a

a

a

a

a

Franklin

Gold

and

Precious

Metals

Fund

(continued)

Assets:

Investments

in

Securities:

Warrants

Precious

Metals

&

Minerals

........

$

192,365

$

—

e

$

—

$

—

$

—

$

—

$

—

$

(76,084)

$

116,281

$

(76,084)

Total

Investments

in

Securities

.

$16,165,020

$3,386,260

$(13,261,311)

$4,297,931

$(585,027)

$

—

$

(305,471)

$

(2,191,545)

$7,505,857

$

(5,079,031)

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Transferred

into

Level

3

as

a

result

of

the

unavailability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

or

as

a

result

of

the

unreliability

of

the

foreign

exchange

rate

and

other

significant

observable

valuation

inputs.

May

include

amounts

related

to

a

corporate

action.

d

Transferred

out

of

Level

3

as

a

result

of

the

availability

of

a

quoted

price

in

an

active

market

for

identical

securities

and

other

significant

observable

valuation

inputs.

May

include

amounts

related

to

a

corporate

action.

e

Includes

financial

instruments

determined

to

have

no

value.

Currency

AUD

Australian

Dollar

CAD

Canadian

Dollar

GBP

British

Pound

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipt

CDI

CREST

Depository

Interest

CVR

Contingent

Value

Right

13.

Fair

Value

Measurements

(continued)

Franklin

Gold

and

Precious

Metals

Fund

Shareholder

Information

38

franklintempleton.com

Semiannual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Fund

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

132

S

03/23

©

2023

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

Gold

and

Precious

Metals

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2.  Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3.  Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services.      N/A

Item 5.  Audit Committee

 

of Listed Registrants.       N/A

Item 6.  Schedule of Investments.                     N/A

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.            N/A

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.                               N/A

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers.     N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a)

 Evaluation of Disclosure Controls and Procedures

.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b)

 Changes in Internal Controls

.

There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company                                    N/A

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN GOLD AND PRECIOUS METALS FUND

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  March 29, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  March 29, 2023

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  March 29, 2023