See if it moves if you reverse (swap North and South ends) of the magnet?? Its still possible the ammeter needle may be rusted/stuck I just cant say from here
The 1.2 ohms don't sound bad, an "ideal" ammeter would have 0 ohms but that's not been made yet.
REGARDLESS of the ammeter put a volt meter on the battery and setting it should read around 12.6 but if coupled to a good working charging system at fast RPM it should rise to at least 13 and up to 14 volts depending on battery and genny and RPM
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