JRI Fireside chat with Scott Macmillan Tues. Nov 28 @ 9:00 Perth/12:00 Sydney, page-435

Hi mate,

I have many more heads than options in my core holding. Other holdings I will rotate between them as the arbitrage opportunity presents itself.

For example, bought options when they were 3:1 against heads and sold them back at better than 2:1 to increase total of heads.

Being here for a number of years the CGT discount applies but on a base of around 2.5 cents per share I’m not willing to sell those long term parcels yet. When I do sell some I will fairly happily cop the tax bill, expecting that to be at multiples of today’s price. Should note also that I free carried last year to help fund a property purchase so I’m more relaxed than some with the ups and downs.

At the current price I would buy heads over options. Just my personal method.