Hi Leon, I recently had a long chat to a retired Electrical Engineer here in Australia who spent his entire life building, installing, and repairing gensets for one of the most well known companies in rural Australia, he is in his 80's and now battling terminal prostate cancer. I asked him about "remagnetising" magnets on old Caterpillar magnetos because I hear it often mentioned, and his opinion was it would be very unusual for that process to be required on most old units UNLESS the magneto had been dropped repeatedly, or hit sharply with a heavy object, or, been left sitting on top, or in close proximity to an an electric current producing machine like an Arc welder or generator. It seems there is very little magnetic force required to produce a reliable spark.
I really enjoyed talking to this gentleman as I know very little about repairing old magnetos, he said around 95% of magneto problems are usually repaired by cleaning the points and all the electrical connections within the magneto, if that doesn't work then replace the condensor, if that doesn't work then it is most likely in need of rewinding if it is an old unit such as the one out of a 22 like yours, here in Australia that now costs about $US180-$US200 to rewind. Of course there can be other oddball problems to drive you nuts with these old magnetos, and if you have a full head of hair right now I'd get a family portrait taken ASAP before you start losing it.
Right now if I was in your shoes I'd clean all the connections within that magneto if you are confident your points are clean and adjusted properly, if that fails contact your local Cat Dealer or Florin Tractor for a genuine condensor, or a local magneto shop for an alternative. Most old magnetos benefit from a good clean out and relube of the bearings in any case, even new bearings on the old gas Cat magnetos that have done a lot of hours, I think the bearings on my 2 Ton Eisemann magneto were about $US25 around 5 years ago. Just remember that electricity is a lazy beast and will always take the path of least resistance to Earth.
Good luck.
regards
Mike