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That would be possible if the strength of magnets didn't reduce over time. Seeing as they do, then it's not possible.

How is that an issue? They can always be replaced with new ones. Considering it doesn't happen that often and that they produce mroe electricity than they cost to replace it would still be profitable to make such a machine.

This is where you're getting it wrong, using a magnet would require precise calculations and once the magnetic force drops by a single percent, those calculations would be wrong. If a PMM was made that had a magnet that was supposed to pull a steel ball in its direction at a particular speed so that the ball can fall through a hole in front of the magnet, if the magnetic force of the magnet reduces even a little bit, that speed reduces and the other mechanisms of such a machine would equally suffer for it.