Kenmare Resources bounces back to profit on record output

* Sees (Shanghai: 600481.SS - news) robust GDP continuing to support prices

* Debt repayment holiday until February next year (Adds quotes from MD, shares)

LONDON, March 22 (Reuters) - Kenmare Resources (LSE: KMR.L - news) , one of the leading global producers of titanium minerals and zircon, on Wednesday announced an 88 percent reduction in debt and a return to profit after record output in 2016, which it expects to beat in 2017.

The Dublin-based company, which operates in Mozambique and produces minerals used in paints, plastics and ceramics, restructured its debt last year after being hit hard by the commodity price crash of 2015 and early 2016.

Kenmare says its fortunes have been transformed by a combination of cost-cutting that reduced cash operating expenses by 18 percent, a rebound in the market for its commodities and a debt repayment holiday until February 2018.

"We went from a prolonged and deep downcycle to the current strong recovery. It was a year of two halves," Managing Director Michael Carvill said in a telephone interview.

He blamed the price crash in the minerals they produce on surplus supply from China, which he said the fall in prices had addressed as it prevented surplus production.

Earlier this month in China, the official Securities Times reported a more than 200 percent gain in titanium concentrate prices compared with early 2016.

"The product market recovery remains at an early stage and we believe higher prices will be required to meet growing titanium feedstock demand," Carvill said.

Kenmare's shipments of finished products rose by 28 percent to a record 1,024,200 tonnes and the company said it expected to increase the number this year.

Its net debt at the end of 2016 was down 88 percent to $44.8 million following recapitalisation and record production of the minerals it produces - ilmenite, rutile and zircon.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at $5.2 million versus a loss of $11.5 million in 2015. (Reporting by Rahul B in Bengaluru and Barbara Lewis in London; editing by Jason Neely and Louise Heavens)