Investors have lost a lot of money in mining companies the past few months, but they still seem interested in finding the next big winner.

About 300 investors are expected for BMO Capital Markets' annual global mining conference, which began yesterday in Florida and continues through Wednesday. The event, which attracts senior management from most of the world's major mining companies, drew about 365 investors last year, so there is not much of a drop-off. Likewise, next week's Prospectors and Developers Association of Canada conference in Toronto is expected to draw another huge crowd.

Egizio Bianchini, head of BMO's global mining group, said in an interview that investors are coming for a couple of reasons: some are trying to determine when the commodity cycle will get back on track (or if it will), while others are simply bargain-hunting for good stocks.

But if the BMO conference is proceeding as usual, at least one thing is different: there are a lot less hedge funds in attendance.

For the last few years, over-leveraged hedge funds played a crucial role in driving commodity prices and mining equity valuations up to outrageous highs. Many of those funds have unwound their positions, and some simply do not exist anymore. So the conference is back to its traditional audience of resource–focused fund managers.

Another change from prior years is that gold companies are expected to generate a lot more interest from investors than anybody else. That should come as no surprise, as they are the only ones that have emerged stronger from the carnage of the last few months. And after a big round of financings, the larger gold miners are expected to get very aggressive on the mergers and acquisitions front.

Mr. Bianchini said that M&A should become a theme in base metals as well.

"Clearly in the base metals sector there are the haves and the have-nots. I think you'll see some of the better assets picked up," he said.

One buyer is almost certain to be China, a theme expected to dominate both the BMO and PDAC conferences. The recent US$19.5-billion investment in Rio Tinto Ltd. by state-owned miner Chinalco opened a lot of eyes, and Mr. Bianchini pointed out that the Chinese would never make such a move if they did not expect supply shortages in the future.

But he acknowledged that it will take more than a mining conference before investors are confident about putting money back into the sector. He said the commodities will have to stabilize first, with a lot less day-to-day volatility.

But now that the sector has largely re-capitalized, he is hopeful that better days are ahead.

"We tend to be optimistic about long-term commodity prices," he said.