I would like to start off by wishing all of you and your families a Happy New Year! I hope everyone was able to enjoy some time with family and friends. I want to thank all of those who were on shift over the holidays and could not be home with loved ones. I know how it feels to make those sacrifices, and I want every one of you to know that it is very much appreciated.
With the holidays behind us, I would like to reflect on 2022 and look ahead to 2023. Last year was challenging and filled with changes both at our site and across the globe. Global factors had a drastic effect on oil prices, which in turn affected labor, freight, consumables, parts, equipment, operating, and outside services costs at the mine. While experiencing these inflationary conditions, we were also trying to achieve our production guidance after a deficit that began during the first quarter of the year. Through a lot of hard work, dedication, new Continuous Improvement (CI) and Business Improvement (BI) initiatives, and the introduction of the Management Operating System (MOS) everyone worked together to try and meet our production targets. Our Operations teams increased both mined and milled tons through process improvements and increased availability of fixed and mobile equipment thanks to the hard work of our Maintenance department. These increases could not have been possible without the help of all our support departments. Tech Services facilitated improved planning through the implementation of MOS, Safety expanded our CCV program, Environmental was instrumental in Kensington receiving a favorable final Record of Decision on POA 1, HR worked tirelessly to improve employee culture, Surface Operations kept our roads clear, Supply Chain worked to maintain our inventory while the world was facing supply chain issues, Finance worked diligently behind the scenes to keep our operations going, and IT kept our data moving in an increasingly technologically advanced world. Together we achieved record mined and milled tonnages.
As we move into 2023, we still have challenges in front of us. Costs continue to be high. It is imperative for the future of our operations that we continue to look for new ways to improve our processes to reduce costs and increase production while always maintaining our high standards for safety and environmental stewardship. Our major initiative for 2023 is our multi-year exploration and development plan. Launched last year, this plan has already shown success through positive exploration results. Continued success will provide the opportunity to add more resources and reserves to our mine plan which will give us operational flexibility and extend our mine life. Thyssen Mining will start mobilization to site this month to provide contract mining support. The use of a development contractor in Zone 12 of our Kensington deposit will allow our crews to develop critical areas of the mine sooner for future exploration and production. Our 2022 BI program was another area that saw great success, and we can continue that success with new projects and process changes this year. 2023 will be a year that we all need to tighten our belts, but I am confident that we have what it takes to have a successful year and set ourselves up for the next chapter here at Kensington.