Australian iron ore miner Mineral Resources Ltd. has reported a 72% drop in annual profit to $351 million.

The company said earnings were negatively impacted in the first half by lower iron ore prices and widening of discounts, both of which stabilised in the second half.

"Against the headwinds of iron-ore price and inflationary cost pressures and the pandemic still affecting our everyday operations, we achieved the second-best financial performance in our history while investing in major development projects that will set us up for the next 30 to 50 years", said Managing Director Chris Ellison.

Shares in Mineral Resources dropped 3.21% in early trade.