Photo Mechanic 6 caches slow-loading image types as JPEGs in its Render Cache. If the representation of the image (say a TIFF for example) in the Render Cache is newer than the TIFF image then that representation will be used for all other visualizations of that TIFF image (thumbnails, previews, etc.) If the TIFF file changes and becomes newer than the cached representation, then a new representation is cached in the Render Cache.
If the image is a JPEG already or contains a JPEG preview (like most RAW files do) then PM uses the JPEG directly from the image. Each of the representations that the contact sheet uses caches the image to disk as a JPEG so that they can be accessed more quickly when the Memory Cache decides to dump some in-memory representations. Least recently used cached images are dumped first.
HTH,
-Kirk
P.S. I suggest having the Disk Cache be on a fast, local disk, and make sure that Spotlight is not set to index that location. Otherwise performance may suffer.