The cuts, made by administrators Michael Ryan, Mark Englebert, Stefan Dopking and Quentin Olde of Taylor Woodings, were a part of the process of placing all of Kagara's Queensland base metals operations on care and maintenance.

Just 95 Kagara staff remain.

The first meeting of creditors was held in Townsville yesterday and Ryan said although the administration was at an early stage, the process was progressing well.

"The administrators are undertaking a detailed process and we're focused on understanding the group's affairs as quickly as possible while ensuring we meet our professional and legal obligations," he said.

"Over the past eight days we have held numerous meetings with key stakeholders, liaised with the management team about restructuring options, secured the group's assets and met various regulatory and compliance obligations."

Initial investigations have found that the company's assets have a book value of $A411 million and the number of creditors is estimated to be more than 830 at this stage.

The administrators estimate that creditors are owed $85-95 million.

"We will be looking into a range of options, including the sale of non-core assets and recapitalisation of the group to realise value for the creditors and shareholders," Ryan said.

"In determining the best way forward, we will seek advice regarding the high-level valuations of the group's assets."

The administrators said they would keep shareholders and creditors updated and would make an application for an extension of the convening period for the second meeting of creditors for up to six months to allow time to complete the process.