You cut the rhizome at the end that is growing, which in the photo appears to be on the right side. I would cut it behind the last node--the node is on the rhizome at the point from where the leaf grows. If you want a second or new plant, cut the rhizome back to leave several nodes with leaves, and that cut piece will continue to grow so you can plant it somewhere else on another bit of rock or wood.
I've never done this, so I'm not certain if the older portion will just send out another growing tip, but I would assume so. Sometimes leaving it alone to continue growing off the rock can be effective too.
Byron.