VALCO Revenue Rises 13% Despite Production Shortfall

Robert Makila Sambian

Volta Aluminium Company Limited (VALCO) has recorded a significant turnaround in its financial performance for the year to September 2026, posting a positive EBITDA of $1.4 million compared to a negative $13.08 million in the same period of 2025.

The performance update, presented by Chief Executive Officer (CEO) Robert Makila Sambian (PhD), shows a swing of $14.48 million year-on-year, driven by a 29% rise in global aluminium prices and a deliberate shift in business model from primary aluminium to value-added products.

The report, themed “Where we were, Where we are, Where we are heading,” aligns with President John Dramani Mahama’s vision of an Integrated Aluminium Industry and the 24-Hour Economy policy.

Production Below Plan

VALCO produced 29,596 metric tonnes (mt) as of September 30, 2026, against a plan of 39,813 mt, representing a shortfall of 25.7%. Production was also 13.6% lower than the 34,254 mt recorded in the same period of 2025.

The shortfall was attributed to the June 29, 2026 national grid collapse, which knocked operating cells from a peak of 124 to 90.

Mr. Sambian said management has since implemented a disciplined cell restart programme, targeting 98 cells by October 2026.

“The near-term strategy is to sweat the two existing potlines from 23% to 40% capacity to deliver 80,000 tonnes per annum from 2027,” he said.

Revenue Up Despite Volume Drop

Despite lower volumes, revenue stood at $103.85 million year-to-date, marginally below the $106.28 million plan (-2%), but 13% higher than $91.78 million recorded in the nine months to September 2025, on shipments of 34,146 mt.

This he said was supported by improved pricing while all-in revenue per tonne was $3,506, 31% above plan of $2,676.

“Average LME price was $3,288 per tonne, up 29% from $2,559 per tonne in 2025,” he added.

However, cost pressures remain. Average total cost per tonne was $3,814 against a plan of $2,946, while cash cost was $3,470 against a plan of $2,707.

Mindset Reset And Equipment Injection

The CEO said management’s first act was to declare “the wait is over,” ending an era of deferred decisions and accepted decline.

The company inherited 114 active pots out of 200 deployable (57% operation), revenue fully exposed to LME swings, and critical mobile equipment rented at unsustainable cost.

VALCO has moved from a rent model to a pay-to-own model, undertaking its largest equipment injection since the exit of Kaiser decades ago.

Equipment injected includes 16 lift trucks, 2 payloaders, 1 dump truck, 1 articulator head, 1 tow tractor, 2 melting furnaces, centrifuge system, natural gas pipes laying, mobile crushing equipment and cranes, negotiated on favourable deferred payment terms.

First Rod Cast In 9 Months

A key milestone was the first Rod cast in nine months – a feat never achieved in VALCO’s history. The Electrical Grade Rod Mill now produces electrical-grade aluminium rods for both domestic and European markets.

Mr. Sambian said this marks a shift to value addition and gives practical expression to the 24-Hour Economy policy of one job, four shifts and four workers, deepening local industrialization, supporting downstream manufacturing and reducing reliance on imported aluminium.

$6.5 Billion Investment Ask For L6 And Beyond

Furthermore, he outlined a phased investment plan to transform VALCO into Africa’s largest single-site smelter.

“Phase 1 of VALCO L6, requiring $2.5 billion and targeted for May 1, 2029, includes a 350MW power plant, bauxite mining and concession, alumina refinery and VALCO Line 6 Phase 1. It is projected to produce 250,000 mt with $1.8 billion gross revenue, 17% IRR, 8.6-year payback and 5,000 direct jobs.

“Phase 2, by July 2030, will add 250,000 mt and $1.0 billion revenue.Line 7 & 8, requiring $4 billion by December 2035, will deliver 1.5 million mt – making VALCO the largest single-site smelter in Africa – with $3.0 billion in revenue, 5,000+ direct and 20,000+ indirect jobs,” he stated.

Mr. Sambian said the company is pursuing an EPCF structure where EPC contractors arrange export-credit financing through home-country Export Credit Agencies, backed by bauxite offtake. Cabinet has approved commencement of strategic investor engagement, which is ongoing.

According to the report, four disciplined moves in one year – mindset reset, potline optimisation and L6 modernisation, equipment shift from rent to own, and value addition – have turned the reset into measurable momentum toward 1.5 million tonnes by 2035.

A Daily Guide Report

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